Pensions in Spain and Portugal

Pensions in Spain and Portugal

Abstract

This document aims to provide an updated and comprehensive as possible first description, while compact and accessible for the general public, of existing pension schemes in Spain and Portugal.

Few people are actually aware that there are several pension schemes beyond the so-called general or special public pension 'schemes' in the key public schemes. Many workers, in fact, do not know what pension plan or scheme they belong to, what contributions are made on their behalf or by them, what the basic rules for calculating pensions are and what possibilities they have to complement public pensions through private pensions. For this reason, this document outlines existing pension schemes in the two Iberian countries, whose common stock is the public contributory pension scheme of the Social Security system inspired by the continental European model of professional social insurance established in the last quarter of the nineteenth century by the Bismarckian Prussia.

Key aspects

A public contributory pension scheme remains in both countries that is based on the PAYG method

In both countries there are non-contributory or solidarity public pension schemes for workers who have not been able to contribute enough

Full content of the publication

Tags

Pension funds and plans Pension savings plans Pensions Pensions Political reforms Private pensions Public pensions Social security Sustainability of pensions

Authors

Jorge Bravo

José Antonio Herce

Chairman of the BBVA Pensions Institute's Experts Board

Additional Information

Date published

01/05/2014

Document Type

Working paper

Geographies

Portugal, Spain

Target

General

Pages

24

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