Opportunities in Fund Raising: Spain’s Pension System
Knowledge for getting the most from the advinda Premium goSouthernEurope Pension & Insurance Package.
Population: 46.5 million
Pension system design
The Spanish pension system consists of three pillars:
- dominating mandatory state pension system
- rare voluntary occupational schemes
- voluntary private pensions
General retirement age is 65, gradually raised to 67 since 2013 until 2027.

Public Pension
- dominating mandatory pay-as-you-go pension system, financed by contributions basing on salaries
- mandatory for all employees
- minimum contribution period of 15 years
- minimum pension (“pensión mínima”) without paid contributions, depending on indigence; 2017: 593,50 Euro
- fixation of maximum pension; 2017: 2,573.70 Euro
- percentage of pension payments depends on number of contribution years; for 100% payment 37 years of contribution years are necessary, 50% payment are granted with 15 contribution years
- pension payments are price subscripted
- three levels of solidarity within Spanish public pension system:
- between generations (active employees pay for the elderly beyond 65/67)
- between regions (lower and higher pension payments)
- between people with higher and lower income à existence of minimum and maximum pensions
Private pensions
Total investment of providers of funded and private pension arrangements equivalent to: 14.0% of GDP (2016)
Private pension assets 2016: $ 164,240.5 million USD (all forms of private investment with a value associated to a pension plan over which ownership rights are enforced by institutional units, individually or collectively. This indicator is measured in millions of USD; source: OECD)
Pension funds’ assets 2015: $ 112,021.4 million USD (assets bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits. The pension fund is a pool of assets forming an independent legal entity. This indicator is measured in millions of USD; source: OECD)
Net pension replacement rate 2014: 89.5% (individual net pension entitlement divided by net pre-retirement earnings; measures how effectively a pension system provides a retirement income to replace earnings. This indicator is measured in percentage of pre-retirement earnings by gender; source: OECD)
Sources:
Seguridad Social – http://www.seg-social.es/Internet_6/Trabajadores/PrestacionesPension10935/Jubilacion/index.htm
The Organisation for Economic Co-operation and Development (OECD) – http://www.oecd.org
Financial Scout 24 – https://www.financescout24.de/wissen/ratgeber/mindestrente
Europäische Liga Sozialer Angelegenheiten – https://www.elsa-eu.de/altersruhegeld/kernlaender/spanien/https://www.financescout24.de/wissen/ratgeber/mindestrente