The expenditure of the entire pension system will increase exponentially in the coming years due to the progressive exit from the labor market of the so-called "baby boom" generation, the largest one. It will do so, in fact, from the current 202.607 billion euros to 616.563 billion euros in 2050, when the peak expenditure is expected to be reached. If observed in relation to gross domestic product (GDP, the indicator that measures the economic activity of a territory), expenditure will go from 12.7% of GDP in 2024 to 15.3% of GDP around the years 2049 and 2050.Taking this trend into account, the question of whether the system is sustainable, especially in the long term, has been hovering for some time. In the eyes of the Ministry of Social Security, the answer is affirmative, and the reasons are, in the opinion of this department, mainly three: the delay in the retirement age, that is, the tendency for people to extend their working lives; the fact that more women are working; and, finally, the evolution of the Spanish economy.All in all, both the expenditure projections and the arguments for why it is sustainable are included in the report that Social Security published this Thursday after launching

Social Security has taken a step forward in making diagnostic assessments of the pension system as complete as possible and without the need to rely on external reports. The ministry piloted by Elma Saiz has just launched a new tool that will allow it to make almost real-time projections of both the system's expenses and income. The objective is to observe whether it is sustainable or not, especially in the long term. But, is the discussion about what is one of the thunderboxes of economic policy over? In parallel to Social Security, Brussels carries out the same exercise, but in its own way.

Contributory pensions will be revalued by 2.7% from January 1, 2026. The increase is the result of calculating the average of the Consumer Price Index (CPI) of the last 12 months (between December 2024 and November of this year), so that when the inflation for this month of November is confirmed...3% year-on-yearThe increase in benefits will be fully confirmed. This will happen on December 12th.

After months of negotiation, finally this Monday the Spanish government has reached an agreement to move forward with the mechanism that has to guarantee baby boomers' pensions. However, Sánchez's government only signed the pact with the unions, since employers walked out of the negotiations. But what was the final agreement? These are the five keys:

The meeting on the design of the mechanism for intergenerational equality in pensions on Monday ended without consensus. While employer associations CEOE and Cepyme have distanced themselves from the Ministry for Social Security's proposal to increase taxes, the main unions are favourable, as negotiating sources explained to ARA, who add that informal contacts will be maintained to try to convince employers, also warning that the bill may yet be changed.