The Government’s plan to increase the retirement age to 67 will save a total of €4,000 million up to 2040 in the Balearics, according to figures released last week. 2040 was used as the year when, according to the Government, the current pension system will become unsustainable.
According to the latest census a total of 280,000 residents in the region are set to retire during the next 27 years. They will be paid a total of €56,037 million in pensions, a figure which can be lowered to €51,024 million if the Government gets its way.
The report claims during the initial twelve years, until 2025, when the retirement age will be slowly raised (by two months each year from 2013), savings of €71 million will be made. However, it continues, the real savings will be made from 2025 with a total of €210 million saved each year.
The moves have proved unpopular with most, with the Trade Unions continuing to voice their disapproval at the measures. However, with life expectancy continuing to rise (it is expected to increase by two and a half years until 2040), it seems there is little option for the Government.
Despite this both UGT and CCOO, the two major unions on the island, announced they would be holding a one-day strike in protest, although the exact day has yet to be decided.
Meanwhile bad loans held by Spanish banks rose by €5.3 billion in December, a thirteen year high, as borrowers struggled to repay debts to unforgiving financial institutions.
