While the American system combines a public approach with a strong private component, the Spanish is based mainly on a distribution model managed by the State.
And yes, both systems face long -term sustainability problems, although for different reasons.
The pension system in the United States
The pension system in the United States is based on three main pillars: Social Security (Social Security), private pension plans and individual savings. This multifaceted approach seeks to diversify sources of income for retirees.
Social Security
He Social Security It is the public pension program in the US. Workers contribute to a 6.2% of your salary (up to an annual limit, which in 2023 is from 160,200 dollars), and employers provide an equivalent amount. In return, beneficiaries receive a monthly pension from 62 years, Although the full retirement age varies between 66 and 67 years, depending on the year of birth.
Social Security faces sustainability problems. According to the 2023 report of the Social Security Trust Board, the Reserve Fund could be exhausted in 2034 If no measures are taken. This is due to the aging of the population and the decrease in the birth rate, which reduce the proportion of active workers against retirees.
Private pension plans
In the US, private pension plans, such as 401(k) y los IRA (Individual Retirement Accounts), They play a crucial role. These plans allow workers to save for retirement with tax advantages. For example, contributions to a 401(k) They are tax deductible, and the funds grow tax free to their withdrawal.
The importance of these plans has grown in recent decades, since many companies have stopped offering traditional pensions (defined for benefit) and have opted for defined contribution plans, such as the 401(k). This has transferred much of the risk of retirement to workers, who must manage their savings effectively.
Individual savings
In addition to Social Security and private plans, Americans depend largely on their individual savings to complement your income during retirement. However, recent studies show that many citizens are not saving enough. According to a 2022 survey, the 28% of Americans It has no retirement savings.
The pension system in Spain
The pension system in Spain is mainly department, which means that the contributions of active workers finance the pensions of current retirees. This model is managed by the State through the Social security.
Pension calculation
In Spain, the pension is calculated based on Quotation bases of the last 25 years of work life. To access a full pension, workers must have quoted at least 36 years and 9 months and have reached the legal retirement age, which is currently 66 years (Although gradually increasing 67 years).
The Spanish system is generous in terms of income replacement. According to the OECD, the average pension in Spain represents around the 80% of the salary prior to retirement, One of the highest rates in Europe. However, this generosity is also one of the reasons why the system faces sustainability problems.
Sustainability problems in Spain
The pension system in Spain is under pressure due to population aging and low birth rate. According to data from the National Statistics Institute (INE), in 2050 more than 30% of the Spanish population It will have more than 65 years. This means that there will be fewer active workers to support a growing number of retirees.
In addition, the Social Security Reserve Fund, Known as the «Pension Hucha,» has been largely exhausted. In 2020, the fund had more than 60,000 million euros, But it has been used to cover deficits in recent years.
What pension system is more effective?
Although both systems face sustainability challenges, there are key differences in their structure and focus. The Spanish system is public and cast, which means that it depends largely on the contributions of active workers. On the other hand, the American system combines a public component (Social Security) with a strong emphasis on private plans and individual savings.
Also, the Spanish system offers more generous pensions in terms of income replacement, but this also makes demographic changes more vulnerable. In the US, Social Security pensions are less generous, but they complement each other with private plans and individual savings.
In both cases, the demographic changes and population aging They are the main challenges. And, for now, no country overlooks the key to solve them.