The Collapse of Pensions in Spain: A new financial crisis for Europe? - VisualPolitik EN
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- čas přidán 10. 06. 2024
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Spain is one of the countries facing the most problems related to demographic aging in the world. It is expected that by the middle of the century, the percentage of the population over 65 years of age will increase from 19% to 30%. This means that in just three decades the population over 65 will increase by more than six million people.
The problem is that, while it’s great that we are living longer and longer, in practice it creates a lot of challenges. Especially if we’re talking about pensions. The data seems clear: if the model is not reformed, Spain could even face the collapse of its pension system.
In this new video in collaboration with Value School we will try to answer the following questions: Where exactly are we? What financial problem is Spain facing? Are pensions really at risk?
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In Greece, we have the same problem politicians argue all the time "we need more kids for the pensions" "we need more immigrants" when in reality Greek youth have 50% unemployment and 30% of employment. Really wtf is going on?
Too many taxes and regulations makes it hard to start a business and hire people
Notice what they are doing? They are blaming the population for their own crimes.
Why do you lie idioot. It's about a tax scandal it has nothing to do with welfear
Mate, i've been to greece, no one ever knows how a greek tax receipt looks like :)
I know the situation in Greece its bad. And I am sorry about it.
don't they also have 50% youth unemployment? You don't need more young people, you need more jobs for them.
THANKS!
Yeah, but, i dont think poiliticians think that
Even if they all had jobs there still would be a crisis. Its a ponzi/pyramid scheme, and not like a pension scheme at all.
Well they do need more young people but indeed also more jobs for those young people to fully solve the problem
@@nicosmind3 Pension sytem is a pyramid scheme hahaha
In Italy we had the same problem: pensions were really high, equal to the latest salary. It was absolutely unsustainable, but nobody did anything for 20 years because it would have been *unbelievably* unpopular to change them. Finally in 2012 they put in charge a non-politician to do their dirty work. He did the job, making rough cuts like a butcher, blaming the Europe that "was asking for it", and then disappeared. Now the future pensions of young people will be 30-40% lower than the ones that our parents still receive. Which is kinda OK, since the previous system was unsustainable, but I'm very pissed that for TWENTY years nobody did anything, wasting money and putting a HUGE public debt on the shoulders of future generations. The only good thing in this mess is that we were allowed to live rich lives while we grew up and we will inherit our parents investments, but I'm not sure the next generation will be this lucky.
There's a question you haven't asked. For the same contributions, what would you have if that money had been invested, and what income would that fund generate?
Then there's the other question. Why are the pension debts hidden off the books?
You're right. And there is so much misinformation about it. Nobody (almost) has the honesty to explain that even now the vast majority of pensions being paid out are way too generous vs the contributions that were paid during the working years of that retaree. So, maximum exposure to all these poor folks complaining because they only receive € 1.200/month when really what they should be getting is less than half that, based on what they paid in. And the new generations will pay the price for it.
@@AlessandroMarcolin g paid out are way too generous vs the contributions that were paid during the working years
=========
That's a big claim, and you need some evidence to back it up.
So first the warning. Politicians who committed the fraud need a scapegoat. Talk to the young, and they say what you have just said. Talk to the old and its people avoiding taxes. For some reason its not their fraud.
So I've crunched the numbers for the UK. For Mr Average, what would he have got if his money had been invested and not taken by the state.
At retirement he would have had £1.1 million in the fund. An income of £35,000 a year [just under average wage], from dividends alone.
The state offers no fund, 7K year for 18.5 years on average.
If you invested the difference between 7K and 35K, for that 18.5 years that's 2 million.
In then turns out that 10% of taxes go on the borrowing needed to pay the pensions. Compared to 20% that are the contributions. So Mr Average is down 3 million quid over his life time.
I suspect if you do the same with Italy, you get similar figures.
So if the old have been ripped off, all of them, the young are forced to suffer austerity, because of the money going to pay the tax, what's going on?
Well there no such thing as economic karma, the money went to previous generations, and they are dead. Now the current generations suffer, because politicians ran a fraud.
its' a fraud because they hide the debts, took the money and now people have lost. That's a crime across all of the EU
@@Nickle314 You're partially right: if we put pension contributions into a fund instead of giving them to the state, in the end it would become fairly bigger than the total of pension we'll receive in our lifetime after we retire.
However, there's few important details to consider: (1) All pension contributions are deducted from taxes. If we were to get that money in the paycheck and then put them into a fund, the total fund would be around 65% of the final total, which is a big blow. (2) The pension system is an "automatic insurance" for anyone who was so unlucky to have an accident and become invalid. Like it or not, we all pay to help the ones who have been less lucky then us, knowing that in case it becomes necessary we'll have the same treatment (3) This final point is debatable, but a state is generally less prone to fail compared to most banks and companies. This means that you get a less efficient rate but you have the reasonable certainty that your pension will not disappear into thin air. (4) All of this said, we really can't change all of this unless. Unless of course we move to a country like USA, but then you will have a bunch of additional healthcare expenses during old age that in Europe would not exist.
@@Nickle314 You are making it more complicated than it is necessary. What you have paid in as pension contributions needs to be enough to pay for your pensions after you retire. I don't know about the UK but trust me, in Italy that ain't enough, mostly because too many people retire too early on pensions that - in pite og general "wisdom" - are too high.
I'm from Spain, my grandfather worked in Switzerland when Spain was destroyed after the civil war, he came back after a couple of years and have children. My father did the same in France and came back to Spain to create a family. I will leave Spain for the same reason but in my case I won't come back. I think that more and more people from Spain will do the same at least who want earn money in a company or create it. I will work in Ireland but my friends are in the same situation they don't find work and will work out. A couple of them are in England and USA, the other are thinking in France, Germany, etc. This is hard but the future of the young people in Spain is out from Spain.
I know that this is probably a large comment but I just want to relieve my angry with my country here.
Interesting post, Jesús. I wish you all the success wherever you emigrate to.
Excuse me, but aren't a lot of people inmigrating into Spain from Latin America?
@@JSB103 That correct, people from Latin America emigrate to Spain because Spain has better life standards, the same language and culture, it easier for them come to Spain than other countries with different languages.
@@jesusdperez6650, so wouldn't Spain actually benefit with this immigration considering how its own population is getting older, as this video says?
Any thoughts?
@@JSB103 the problem in Spain is the unemployment rate, in young people is about 50% and the general unemployment is about 14% (actually is more than that, but the government has forbidden to the companies fire workers until March, the real rate probably is around 20%). Then, it doesn't matter if more people come here, the important thing is to have jobs for them, because without jobs Spain cannot maintain the system. In my opinion. Spain without the EU would have the same problems as Latin America, maybe less serious but same results.
It is almost always wise to take your life in your own hands, because only you have your best interests at heart, not some government.
In addition to earning income with multiple work, it is good to also have some assets as well. The assets could be cash generative real estate and also some arable land. Then you've created a pension for yourself and don't really need to worry about government shortfalls.
Something that is going to be common in a lot of parts in the world
Ppl need to come inside more often
Naah mostly in eu and china,
@@genocidejoe and Japan
@@genocidejoe China, Japan, South Korea, EU mostly..but they’ll find ways to stay on top and lead, for example productivity will be technology based..Middle East and Africa won’t be able to capitalize
@@bambino8505 africa population is the youngest in the world if am not wrong they will be a cheap labor for china, like china was to america
I know an old Spaniard that is a friend of my father, that lives here in Mexico. Has a big ass house on a hill, second richest neighborhood in the city, and has a business in Spain. He and his wife live here and spend their euros here which gets them more. Both retired but his family runs his business, send him the money, plus he gets his pension. Smart dude!
Many people do that in the Philippines too. retired folks from Europe and North America
Stein’s Law - If something can’t go on forever, it won’t.
Tax evasion is also rife in Spain.
The hospitality sector is full of employers who won't give full, permanent contracts to their staff. So it gets paid in black.
As if that is the problem 😂
That is because of our government.. Its imposible to hire people, you go broke.
This is not as prevalent as it used to be. Spanish employment laws have made it very difficult to pay off the books. Unbelievably hard. When I started my business 12 years ago I thought I could work until I retire, sell the bar and have a nice sum to augment my pension. But with th high taxes, crazy social security payments etc I will actually be worse off.
Having 10 staff costs €4500 a month social security.
Plus every year I have to pay 7 weeks holiday pay totalling 49 weeks. I also have to pay for temporary staff to cover these weeks.
Plus I have to put 4 weeks pay for every year a staff member works for me to pay their finiquito when I retire.As they have all been with me for over ten years that amounts to over €165000. I have already resigned myself to selling my home to pay this. The employment problems in Spain aren’t caused by Bars etc but by crazy employment laws and costs.
@@lahabitaciondelatrapado4621 if the government dont collect tax they cant save of pension
@@chbry1050 besides the fact that taxation = theft
The numbers just don't match.
They just don't. No matter how you look at them.
Current goverment deficit is 1000€ per Spaniard per annum, or >2000€ per worker.
"The rich will pay for it" - sure none has tried that ever before in history.
That's not to mention income taxes are already really high in Spain.
Just Spain?🤔 More like entire Europe.😭
This is a spanish channel, so they better know their own system. For instance, i have checked and the French's system is having half the deficit of spain's system during the last decade. It seems we will need to make reforms later than Spain, but still need to do those...
@@benmat No it's a British channel they just also have a spanish version.
@@sdprz7893 No, it's a spanish company who also have an english channel ...
the US isn't far behind, the social security system will run out of money around the same time unless radical change are made.
That's true, but I doubt he wants to show a positive view of Spain at all. I he is passively toxic about Spain, just check all the videos about Spain in this channel. They are all negative things, not a single positive one and then when it's about scandinavia or the swiss it's all sugar coated.
I’m Spanish and pensions is one of the most controversial problems in the country
Socialism for you
@@Nickle314 Spain is a capitalist conservative capitalist country. For example the USA has more social programs and can be considered more socialist than spain.
@@joey199412 The USA? Holy fucking shit, what a blatant bullshit.
@@joey199412
1. Their pension system has no capital. It's not a capitalist problem
2. Where are the contributions? All redistributed, just as the socialist demand.
3. Are the debts reported? My usual offer, £100 to a charity of your choice if you can find the socialist pension liabilities on the books.
4. So will people suffer losses? Yes.
5. It's therefore a fraud.
@@joey199412 Witha socialist pension system that's the cause of the mess.
Zero capital cant' be capitalist
The saddest part is that there is no mention of this in Spanish media. It is a taboo subject. They only talk of increasing payouts and some age increases from 65 to 67... but then they do mass early retirements at 50 or 55 to create more jobs... only making things worse! Private pension tax benefits have been cut and those are only for the top earners.
I find it weird how he's essentially warning of an economic apocalypse to the soundtrack of an Adam Sandler movie
There is too little money, the economy will collapse.
(🎵🎶🎵🎶🎵🎵🎶)
pensions in Germany are also broken. You retire with 67 years but even that is already to soon. Politicians are already talking about an retirement age of 69/70 years. At the same time the pensions will fall probalby after the year 2025 under 40% of the average income.
No its not. What you mean is that socialist pensions, the ponzi [erste zeuler] is bankrupt.
Indeed Spain and Germany aren't the only ones having problems with their welfare state. The Dutch government just collapsed cuz of a massive welfare scandal as is explained clearly here: czcams.com/video/qtC8wUqoRVc/video.html&ab_channel=MyTake
Why don't we make it a 100 years for fuck sake, you don't work and pay taxes for 45 years to not get something back!!
@@adi6293 That's the plan of the socialists.
Now if you invested you money, then it would have been different.
Ask why they hide the pension debts off the books.
@@Nickle314 I think government should mandate everyone to start saving for their pension as soon as they work, this way it would save everyone's money and we wouldn't be in this mess
The funny thing is that Spain is not the only one with these problems in EU...
Linas: You are right, but Spain has one of the most fragile economies of the EU, with extreme unemployment, stifling bureaucracy, endemic corruption, severe cronyism and a grandiose preference for petty titles as opposed to job experience. Greece and Italy might be even worse off, but I'm not sure.
Unless job creation is fixed (which includes encouraging the self-employed) Spain is doomed to a succession of financial collapses.
@@Zoco101 Italy is completely the same if not worse.
@@Zoco101 if spain forces germany and france to pay for it, then throw them out of EU. Same for greece and italy.
We seem to be only ones with a decent system.
@@Immortal_Liberty If Spain goes, there is no more EU. Spain's existing economic weakness is partly the fault of Germany and France which insisted that the Spanish government pay private banking debts to French & German banks with public money. This caused a misery in Spain that France and Germany have not known since WW2. If Spain goes, she may leave willingly, and then no more EU. Same if Italy and Greece go. These countries were fed like pigs by cynical bankers backed by even more cynical politicians, then taken to their economic slaughter to make their loans bigger.
Spain, Italy, Greece, Portugal and Ireland were all set up. France and Germany can't complain if those economies are still weak. But Ireland recovered a lot it seems - a small miracle.
In America we really value our youth. We have the next 12 generations indebted for their whole life before they ever pop out. They owe before they ever get here. Looking forward to seeing them.
Trillions gone to useless wars, etc.
Japan has a higher debt to gdp so does Spain its not only America.
yup, and you managed that without pensions, healthcare, education and all those other good things we're talking about here. I don't mean to imply youre one of them but, how stupid can a population be to end up with the same problems that the rest without any of the benefits that theoretically causes them? Trully amazing, tough i think the lack decent public education just might be the reason.
The us spends more per pupil than most countries and our kids aren’t any smarter
@@catnadas the US has Social Security, Medicare and Medicaid which is pension and healthcare benefits for senior citizens and indigent. In 2019, the federal government ran a deficit of $900B while only spending $676B on national defense.
You don’t know what you’re talking about.
I'm German and I already know that I will never see a rent
Well... You're German. Feel fortunate.
nicht nur das: weil es in zukunft immer mehr renter und immer weniger junge menschen gibt, wird sich auch unser sozialsystem. hab mir diesbezüglich angesehen was experten dazu sagten. die kamen zu ner einfachen antwort: deutschland braucht einwanderung. Teilweise wird von mehreren Millionen gesprochen. uns erwarten spannende zeiten :D
würde dir hierzu das video auf youtube empfehlen: Hans-Werner Sinn: "Das schaffen wir nicht".
Germany was supposed to be the example for us all, but I understand that they have to work longer for the pension and when they get it it is poor in comparison to living costs. Also very few own their own homes. No it is not the Promised land.
It is incredible that in Spain we have this vicious circle problem: aging population, unemployment, less inmigration and more emigration (especially highly qualified) since so many years, and politicians do not speak about changing the pensions system. I think it would make much more sense to have a system in which the working population pays for its own retirement (i.e like in Switzerland with a public system contribution based on different pillars). For sure, big problem: how to transition towards there? But as we say in Spanish: "no hay peor ciego que el que no quiere ver" (there is no worse blind than the one who does not want to see)
4:24 completelly agree, I'm actually a student in bachillerato here and at least the 75% of my class mates want to take a degree to become teachers, police officers or nurses
Interestingly Spain isn't the only one having problems with its welfare state. The Dutch government just collapsed cuz of a massive welfare scandal as is explained clearly here: czcams.com/video/qtC8wUqoRVc/video.html&ab_channel=MyTake
@@drunkensailor3736 That was disgusting, those people must end their lives in jail if you ask me
really? doesn't it make more sense to become a scientist, engineer or something like that?
@@slkjvlkfsvnlsdfhgdght5447 No, salary is almost the same for an engineer as a public worker. And public workers get insanely good conditions. It’s almost impossible to get fired and you work way less than in a private job.
@@elpintoelpinto2253 interesting, I would never have imagined that being a teacher could pay well
The pension system is collapsing worldwide, not only in Spain
The fact is the pension "system" is what is at fault, not the population pyramid. Had the pensions been actuarily properly funded there would be no problem. But guess what?
@@masterstacker2833 yep, the problem is that it's a system made by this incompetent race called humans
Me: I want Fonseca
Mom: We have Fonseca at home
Fonseca at home:
Bismarck in 1889 adopted old age pension, set to 70 years. catch: average life expectancy was 45
well played sir!
It was 45 if you included infant mortality.
"At the time, the life expectancy for the average Prussian was 45, although this reflects the high infant mortality of the era and retired workers could expect to live until 70 years." Wikipedia.
It was for sure a more sustainable system than nowadays, in which people retire around the age of 65, and can expect to live around 20 years more.
In Australia, people contribute to their own retirement, employers are required to send about 10% of the employee's wage to a fund. The fund manager invests the money for the employee and the employee takes an annuity (pension) upon retirement until the money runs out or the employee dies. Any money left goes to whoever the employee put in their will.
The is a social security aged pension but that is a extremely low payment.
Thus each generation pays for their own retirement.
Britain is edging closer to that via our 'auto-enrolment' scheme.
It's the way forward for people who aren't wealthy or smart enough to have a Self-Invested Pension
Spain: 'Don't worry money machine can go burrrrrr'
ECB: 'Nope'
Spain: O.O
Actually Spain forces the ECB to "print money" indirectly though their irresponsible spending and general weak performance. They just trust that in the worst case Germany will pay their high pensions in form of a bailout.
They are printing the euro crashes exactly like dollar now
@@adrianv.m.2903 it’s not maintaining anything just see real state or stocks. It crashes in the same way.
Doesn't work. The pensions are inflation linked. You cannot inflate your way out of inflation linked debts. You have to tax your way out, or default
@Geoff Wilkins y tiene dinero para pagar sus propias pensiones y más, preocúpate de tu país , Alemania es el país que está chupando del resto ...si eres inglés lo llevas crudo
Why don't they have a retirement fund? In Australia everyone pays 9.5% of their salary to a retirement fund, to support themselves when they get old
How much does someone get every month at retirement?
@@thinkforyourself9334 someone who's been contributing 9.5% of their salary from 20 to 65 years old could easily have $500,000 to 1 million in their retirement fund. So lets say $800.00 per week.
Retirement fund 9.5% became compulsory in the 1990s in Australia.
Because then the government cant pay the earlier generations pensions. All the money the current retirees paid is gone.
@@patricksmith8191 does this retirement fund accumulated interests?
malaysia follow australia for retirement fund but everyone have to pay 11 % . nowday the retire fund have 1 trillion dolar investment in big company, every get dividen every years.
Having lived through this kind of crisis in Poland... yeah, this isn't going to be a nice thing.
@@drunkensailor3736 the welfare scandel occured because the dutch are racist
@@yurichtube1162 and the Earth is flat too.
@@namenameson9065 and they didn't land on the moon!
I'm Spanish, I'm interested. Go on, explain further please.
(and ignore those idiots)
@@lahabitaciondelatrapado4621 It's called COMMUNISM and it always results in the same human tragedy wherever it's imposed, from Soviet Russia, to Maoist China, to Castro's Cuba, to Chavez's Venezuela. Economies collapse, millions die, and dictators exploit the captive population for their own personal gain. THANK YOU COMMIES, VERY UTOPIAN!
This is not only happening in 🇪🇸 Spain, other EU countries have the same challenge!
Belgium’s is the same.
Many Belgian no longer believe that we will have a pension in 30 years from now.
And they are correct. So you need to begin making other plans.
Yes. And the Belgian youth is still bearing massive taxes to support this social Ponzi scheme. Mind-blowing 50% taxes on income, >60% on bonus. This country is a joke with little political courage to make a change, they wouldn't want to lose their votes.
Start your own business, get out of the country or become a parasite
The problem is that society's life is based on useless numbers....we tend to focus on quantity over quality....wasting your life at work in order to "enjoy" the last 10 years of your life....this system deserves a beautiful collapse!
Do you think you’ll be available to survive when you have to hunt for food, look for shelter and protect yourself smh?
@@simpslayer7839 I did not say that the smart things we achieved have to collapse...just the slavery part of the system...the system would still work also by getting rid of the "work your entire life and enjoy 10% of it" part
il BUZZo The blessing of the Lord has gone from Spain it’s an Ichabod situation “Surely the blessing of the Lord has departed from us” Barcelona was involved in Dominoes and Christmas 🎄 Kramer’s 😜 along with Italy 🇮🇹 Vatican 🇻🇦, Ukraine 🇺🇦, Germany 🇩🇪 and Venezuela 🇻🇪. Span has been complicit with George Soros buying up properties in Spain . Furthermore , as a Catholic Country it has not got Social Values any more , just look at Benidorm and it’s vain oblations .
yes but just like the other guy suggested about hunting etc..
Well, we are at the peak of capitalism the best way is to be an employer or good freelancer or have a good business, because working for someone else is going each year worse.
Or maybe just work for the government
@@cautarepvp2079 but the government is also a business....soon or later, if money does not go around, public servants too will end up not having money....because salaries are produced, mainly, by big/small companies taxes
Young Spaniards leave the country en masse to find a job elsewhere, the EU has crushed the ordinary people.
how exactly is the EU doing the crushing? In spain we crushed ourselves just fine without anybody helping
@@catnadas Corrupt EU bankers gave billions to zombie banks and multinationals while givining only pocket money to small businesses. The corrupt EU failed completely with their vaccination plan, they promoted the German vaccine (Pfizer-BionTech)while saying that the Russian and British vaccines are worthless. The end result is that vaccination in Spain goes slowly and people are suffering from disease and poverty.
@@jimsullivan6634 Well yeah, i agree with all that. But man, we are talking about a whole different kind of crushing xD. On top of that theres an endless list of insanely absurd missmanagments that goes on here in spain. The one in relation to that one of the bankers is that the real state bubble in spain was the biggest in the world because somebody thought a good idea to have half of the population building more homes than there are people. And this is just an exaple, if those were the only problems, man, we would be golden!
Japan and S. Korea: hold my beer!
They don't have similar public pension systems so there won't be a similar strain on the public purse. On the other hand, old people who haven't either some kind of retirement benefit from their company or their own savings or children or other relatives who can help will fall into destitution.
In my country Belgium, in the 50's you had 4 workers for 1 pension. Now you have 2 workers for 1 pension. We now have to work until 67 years but it will not be sufficient. I think a lot of country's in Europe are facing this issue.
All of them are. The population boom happened for everybody. Now we'll see wich ones can implement solutions and wich ones fall. Hint: We need inmigration.
@@catnadas No we dont, we need to help European natives to form families
Its a sensitive topic. Pension entitlements need to reduce - but any politician that dares to raise it risks a backlash - so it gets kicked down the road for future governments to deal with.
Taxpayers, having funded the pensions of previous generations, understandably feel its their turn. In NZ, even suggesting raising the age from the current 65 to 67 over the next 15 years causes furore - but we have a much healthier set of government accounts.
For countries like Spain experiencing the problem right now, politicians must show leadership by sharing the pain across all groups receiving public pensions. This includes ex politicians, retired public servants, the judiciary etc. It also includes means testing. It won't be popular but pensioners will find it more palatable knowing they're not the only ones making sacrifices. It will also send the message to current Taxpayers to start saving.
Agreed Dan. Final Salary pensioners should also face cuts
Try being self employed in Spain, it's so expensive €280 a month whether or not you earn anything. You pay IVA (VAT) from the first cent. No incentive to try. I gave up.
Being a "recibos verdes" aka self-employed, here in Portugal used to suck as well, and sadly lots of workers were forced by employers to act as one because that way they wouldn't have to pay the honestly exorbitant taxes that are put on businesses to pay a salary.
The government at least took notice and now you only have to pay 24€ if you don't make anything and they raised the minimum threshold for vat to 12k per year, you still pay social security tho. Starting an actual business on the other hand is still stupidly expensive...
@@Rubysh88 I'll be a UK pensioner in the Summer, not the best pension in the world, but OK for me. Until they try and kill me with the vaccine anyway!
@@melbeasley9762 lool many people got vaccinated and no one died?
@@cautarepvp2079 Deaths from the vaccine are about 500 las time I checked, with many more injuries.
@@melbeasley9762 Nah
The problem is that most sugggested solutions are to just have more children, but infinite growth does not work and you are just making the same issue a lot bigger way down the line. But that is very human: It's not my problem, I'll be dead by then.
@@patricksweeney5308 - Funnily, you did not make a single argument as to WHY higher birth rates solves the problem? All you did was to draw negative suggestions to communism somehow..
With higher, and even sustained population levels, you get problems with unemployment, poverty etc.
Increasing the population only solves things NOW, but 40-50 years from now it will be a huge burden, not just on the country itself, but the world. Why do you need a growing population when automation and robotification simply will do most work? And with poor economy, the need for manual labor falls even more.
Just look at the US, the whole of US is just a poverty zone now, with most households not even being able to withstand a sudden cost of 1000 USD. 40% cannot even afford a surprise cost of 400 USD, which is ridiculous. and a sudden 4-5000 USD cost would simply just bankrupt over half the american households. There are simply too much greed and not enough jobs in the modern world to sustain a growing population.
@@patricksweeney5308 You're missing the point. Birthing more people into this Socialist ponzi scheme is just injecting more suckers into the bottom of the socialist ponzi scheme so the socialists have more peoples blood to suck. This Socialist system is unsustainable. The problem is we have too many people already dependent on it. We need less dependents so we don't all go broke. End Socialism.
Well, in reality the solution is not to have more children. We are in this situation because of the population boom of the 50 and 60. After that, no more boom, stable population. If you have more children we are again with the boom. The real solution is the importation of workers from other places to balance out the effects of the aforementioned boom After that youll have an stable population. But you try suggesting that in the astonishly anti inmigration climate. Stupidity always wins i guess.
@@catnadas Why would dumping more people into an overpopulated ecosystem be a solution, genius? Or are you being satiracle? I can't tell anymore with you people. We import immigrants to get around Socialist unions who made our citizens too expensive to hire. So again, the solution is to end all this Socialism nonsense that has made life impossible, and to stop feeding people who can't feed themselves.
@@catnadas "The real solution is the importation of workers from other places"
The reasons why that is not a solution are:
-low skilled jobs are disappearing fast in developed countries
-countries with lots of potential immigrants are underdeveloped countries, where most people have low qualifications.
An African farmer with elementary school education is not going to be able to do anything more than a basic manual labour job in Europe, and those are almost gone.
Moral of story: If you are a young, productive and entrepreneurial person, living in Spain, book a one way air-ticket FAST.
Be sure to check if there's an "exit" tax that you need to work around before you depart.
Key words: Visa and Job opportunities.
Hahaha no Visa needed if you want to work in other European Countries, and no, there are no extra taxes for working abroad, we are not USA
said someone who never immigrated anywhere.
@@vladimir0681 well I don't know if you mean me or Rustom, bur I know what I'm talking about, I'm an immigrant myself and lived and work abroad for many years
honestly this basically applies anywhere in Europe. We all have the same demographics, Spain ist just especially bad
This happens in EVERY "developed" country.
cities and megapolises, working more than ever for less and less, worse and worse social and cultural values and mindset, yeah it's pretty much expected.
And China owns all our debt. They will own us.
@@namenameson9065 you should worry about the next in line owner first.
Well, Sweden has legally balanced pensions system, so no. Same for Norway, which managaed to stash equivalent of most countries GDP on future generations fund.
"Developed" countries aka Spain, Greece, Italy and Portugal
Ok so... incentivize some kind of off grid saving like 401k or whatever they do in Merica. Push reform age to 65. Have old people do like part time jobs like they do in Japan or whatever. It would be many solutions combined. There is no simple solution. Also reforms to prevent corruption. But thats for the whole Iberian peninsula, our politicians are some of a kind.
Another disastrous example of Socialism: Let’s encourage everyone to be dependent on the state for pensions & healthcare. So everyone thinks we no longer need to save for old age/healthcare, and no longer need to depend on family so we can have less children or never bother with them atall. Suddenly everyone asks where have all the young people gone, and where the money is to pay for future pensions & healthcare.
Not to worry the next generation of young Muslims will be paying for Spain’s future economic recovery.
The trickle of immigrants we have at present entering Europe will undoubtably turn into a mass exodus from the African continent with the onset of severe droughts bought about by climate change and the continuing political unrest.
@@kerkiraz your analisis is flawed in so many ways that i don't know where to start correcting you. i'm guessing you're from the usa. So here it goes:
1-people do save for old age, they are forced to through taxes. The issue is one of demographics (baby boom, look it up) wich always was inebitable coupled with missmanagement.
2-We do pay for helathcare, not the state. The difference is that is mandatory for everybody, there's a tax just for that (and we pay like half of what you pay all the while covering 100% of the population instead of only those who can afford to pay double... or much much more in case you actually get sick). oh, and they dont rip us off with the price of drugs either.
3- People don't have less children because they no loger need them to support them when they are old, c'mon man, that's just stupid. They have less children because nowadays all of them survive instead half of them dying and we can fuck now without having them, big one here. I reckon you americans don't know much, but c'mon man, this one is easy.
geez that was a lot of words, i fear you won't make it to the end.
Anyhow, if you got here, congrats, you just took your first step in rejoining the proud group we call the human race and away of your present existence as a sugar gulping amoeba. Keep it going man, i believe in you, there's a lot of collections of written words that can help you go further. You may have heard about them, they are called books and nowadays you can consume them in spoken form. Reading is hard for amoebas, but you can just listen while you gulp sugar.
Cheers!
@@catnadas savage.
Isn’t just amazing how in the US the Social Security act was passed Boomers lived high on the hog their whole life, didn’t save any money and didn’t have children to later pay for the benefits they now expect to receive?
💩🤡
Increasing the retirement age would help but companies force out older workers in Spain and don't want to hire anyone over the age of 40; more truthfully 35. Hard to see a solution for this one.
well, just two things. The first starts with inmi and ends with gration. and the second is just a little bit of good management. Sadly we have a severe case of inmigrationfobia aka the best way to win votes when your plans are to fuck up your electorate and the managment the government does is... well, nonexistent.
They need to do several things: 1) encourage skilled immigration. Especially those that can bring innovation and start business. 2) Deregulate small business to encourage more jobs. 3) raise the age of retirement. 4) encourage secondary retirement savings. Similar to a U.S. 401k. 5) lower retirement benefits.
The same Problem have other European states like Germany/Italy/Austria too.
That is why we have to continue working longer and longer in life.
You're absolutely right, sir.👍
Agreed that Spain isn't the only one having problems with its welfare state. The Dutch government just collapsed cuz of a massive welfare scandal as is explained clearly here: czcams.com/video/qtC8wUqoRVc/video.html&ab_channel=MyTake
I want to continue working but they say I am too old and don't hire me.
Did you watch the video? As explained Spaniards retirement age didn't increase the way it happened in Germany for example. What's more they are also way more generous with pension budgets. That's why it's such a catastrophe
Spoken like a true fraudsters. Blame the victim. Force them to pay in more and get less.
When men and women have both got to work longer and longer hours
No time to have kids!
We need it where one adult works and is able to buy average house and look after 2 adults and at least 2 kids financially
As a UK pensioner watching videos such as this, I despair at the short-sighted foolishness of politicians worldwide. A system that only pays a set amount on retirement is needed and workers will be obliged to save into a scheme that tops it up according to your rate of (another) contribution.
They want people to retire later but put them in pre-retirement because of the lack of jobs, and anyway employers don't hire people above 50-55 (if you are lucky.)
Just about all public pension systems are “pay as you go”. The taxes that don’t go to direct pension payments go into government bonds which are just another way of saying general government spending and are ultimately paid by future taxpayers. This is different from a private pension which is invested in stocks or bonds companies that actually produce useful goods and services. Governments could also do this but the funds are so big it would dominate the stock and bond markets and certainly lead to corruption and political influence.
Your last sentence is a big point.
That's exactly what's happening in Italy
Yeah Mediterranean countries aren't the only ones having problems with their welfare state. The Dutch government just collapsed cuz of a massive welfare scandal as is explained clearly here: czcams.com/video/qtC8wUqoRVc/video.html&ab_channel=MyTake
@@drunkensailor3736 Are you trying to get reported and erased for self-advertising and spamming? Go away with that egoism.
@@SerenityM54L2SAM5L5N1 why are u deniyng this, its true, dutch exonomy is colapsing, rents to high, cost to make a family are to high.
Italy is a top candidate to defect from EU.
The EU won’t last. It benefited from a globalized world... but the world is returning to its normal state.
11 minutes is too long for this. It can be 5 to say the same info
No Utube video should be longer than 5 minutes. I've edited mine twice and still embarrases it's nine minutes. May split it in two!! 2021 and Utube posters haven't heard of EDITING?? we need a "Needs editing bad" button.
AlGoRiTHms... It's all about that add revenue
Obviously they need to increase the age of retirement. Anything below 70 simply isn't sustainable. And the 83% of last salary is incredibly generous. Spain should cut it to 60%.
Salaries are low in Spain. Misleading to quote percentages when not like for like comparisons are made.
And 1.400€ max. Getting 2.200 is too much.
What did retired Russians do when their pension system collapsed with end of de URSS ?
They went to live to their "dachas" (countryside houses). I remember lots of stories in the 90s about how millions of them survived to live without money producing and barting food in their little countryside properties.
You don't need to wait for the future, the past is a very big teacher.
I'm in my 50s and I'm ready, I bought a two acres properties 4 years ago and it's already producing some food.
That is great for you.
In Greece ,everyone will do the same (regardless of age) , now that the economy is straight for default.
Russia is different country, however we have the same european problem :)
Our globalist elites are plotting to force everyone out of the country and into urban centers where they can be controlled (and then depopulated). For us, we may not have the ability to retreat to the country after they seize our rural property.
@@namenameson9065 take your pills, stop blaming government for your lack of will. Just do it and stop talking nonsense.
@@chubbygardener They say it themselves. It's in their own public documents. You denialists don't understand they're gaslighting us all.
The same problem is in Romania
In the US social security is going broke. Full retirement age varies from between 66 and 68 depending on when you were born but even if you want to keep working employers won't hire people over 50.
At least people have savings.
Here in Spain EVERYBODY expects the goverment to fund their pension. They own their home and little more.
The US needs privatized social security. A conservative portfolio of mutual funds, index funds, and government bonds would increase pensions, create jobs, boost the economy, and our debt to gdp ratio could be cut in half.
After 6 years living in the United Kingdom I don't see myself coming back to Spain until my next life. I'll be homesick forever...
Mi novia es igual, vive aqui conmigo en Manchester, le encantaria volver pero asi como es, no se puede, una pena porque es un pais muy muy bonito, soy ingles, he intentado vivir y trabajar alli pero el tratamiento de los trabajadores alli es una ******
Our pension system is far more sustainable - but you'll need to top it up with a private or employer scheme
@@juliantheapostate8295 I can see auto enrolment increasing over the coming years with further contributions required by both individuals and companies.
Meanwhile expect the pension age to increase slowly again as they do this.
I think in the end the UK also benefits from a (slightly) better birth rate than most other European countries and also thanks probably to English, a good and steady flow of immigrants.
Our private pensions system is just so much more mature than most of other European nations too.
they must be in a lot of spain right now
Someone has got some splaining to do! Lucy!
This occurs all over the world. They make it so hard for young people to get a job. I can only speak for California since I live here. You need to go to college that is super expensive, then get a job that doesn’t even pay that much, and housing is exorbitant. It’s impossible to have kids. It’s actually responsible NOT to have kids. Why have kids that one cannot support?
So without people having enough kids, the aging population increases-causing old people pensions to go down. It’s like old people created problems for the younger generations and for themselves? The simple solution is to cut pensions. It’s the fair thing to do.
This sounds an awful lot like Argentina. We're just 20 years ahead of Spain it seems.
Yes, but Argentina keeps repeating the same thing over. Argentina never learns. 120 years ago Argentina had a standard of living equal to the US.
@@marcv2648 Yeah, I know. Argentina was once the richest country in the world per capita. That's why economist Simon Kuznets said "there are 4 types of countries: developed, undeveloped, Japan, and Argentina." It's definitely true.
I don't want to think about it.
Actually in Spain we have a problem of living costs vs. Salaries... I was born in the 80s and lots of my friends an me included, we are having problema to pay rent, a car to commute to work, etc. we do not earn enought to mantain a child and no way 2 o more.
Don't get children
That's what I keep saying, young people if they are doing well can afford maybe one child. In most countries living expenses are so high.
@@toddlavigne6441 i think it is part of problem, but honestly in Africa they still have average of 5 children ( Niger 7 f.example) and i do not think that opportunities are better there. It just has a lot of with development of nation, the same is happening in Japan, Korea, even CHina faces the same problem (people just want to have 1-2 kids or no kids at all. In general all EUropeans have much more sources to have kids and raise a family than some poor countries but still they do not have more than 1/2 kids.... But this pattern will be seen in the rest of the world soon, even in India or Bangladesh the birthrate is 2,3. It felt from 7 in 60', the same with Brasil, after 2050 it will face population decline
Am sure Bill Ackman laughs in his office at such news.
Exactly who came to mind... His program should be considered
@@mwanikimwaniki6801 Would only really work in developing countries, the market can't have constant growth if consumption isn't growing which can't happen if the population is literally dying. If some African or Asian country were smart enough they would get their shit together and do it.
@@sdprz7893 I hope some country considers it. I am in Kenya and I'm sure as hell no one will implement this.
@@sdprz7893 am from & stay in Zambia, a classic trump shit hole country lol. Me and a friend were discussing and debating it's feasibility in Zambia and the biggest problem we had was, in ackmans original plan he was going to invest the money into American capital markets (most of it). Subsequently boosting American development growth and it becomes a whole snowball effect. Using thus strategy using historical market trends the investment can recoup 7% +, only problem is in Africa, Zambia to be precise the capital markets are shit you'll make a return of 0.6% a month which isn't much, so they would prolly have to go into bonds or something. If we are to focus on investing outside of Africa the currency depreciation risk is pretty high due to the outflow of all that money and it won't really promote endogenous growth.
hello love this topic, and would like to know do you have the financial and pension figures for Australia? Only because I am watching from Australia!
Anyone have more detail on the measures to improve the situation that were rolled back? He mentioned them briefly but didn't go into detail. Something about encouraging personal saving.
Awesome
Absolutely fantastic
really good
@Art Man What can I say, I live in Spain and this fascinates me.
Have an absolutely fantastic day.
@@MentourPilot ^^Hey look! It's my favourite pilot.
I am not particular interested in planes and not particular interested in Spain .... makes me wonder if I watch too much CZcams during covid if I run into Mentor Pilot at a video about Spain.
It Italy the situation is absolutely similar. France's situation is even worse.
Fertility rate in France is the highest of Europe and the economy is better than Spain and Italy. France is not the weakest country among the three, although we have many other problems to deal with ...
@@franceeternelle3751 I disagree. If you look at total debit (government debt plus private debt) France is far worse than Italy. Plus if you look at the trajectory it is even worse. Then, there is a huge difference between the fertility rate of muslim people and the other groups. Which increases social tensions. Most of the births are among people with lower education, which does not improve the productivity, but quite on the opposite, increases the welfare expenditures. I am not saying in Italy or spain it is all roses, but to me France is the country with the largest problems. Social tensions, huge welfare expenditures, skyrocketing total debt.
@@CaravaggioRoma Debt doesn't mean everything, look at Japan. Japan's debt reached 223% of their GDP in 2020. What is important is how you reimburse your debt, in other words, how strong is your economy or how investors trust in your capacity of creating value. Immigration is another problem wich was part of my last sentence "we have many other problems to deal with"). However immigration itself is not a negative thing, what is dangerous is uncontroled immigration, which is the main problem of France and some other rich european countries. Socialism in France is the reason of the vast majority of our problems.
@@franceeternelle3751 Japan does not accept any form of immigration because it would be an unacceptable burden for the welfare. Plus, the debt is held internally. Third, they do not have the euro, but a central bank that buys and sells treasuries based on the country's needs. Since the inception of the euro, the debt of France and Germany has taken two opposite trajectories, whereas at the beginning of 2000's they were quite similar. Again, different macro situations.
@@juliusnigelmarturillas3629 I almost agree with all you say, but I did not make the rules, I simply study them and understand them to invest properly. In any case, Japan is a very very rich country, it is not Zimbabwe. Life expectancy is very high, youth is highly educated. I do believe that their way of managing debt is not that quirky. But it would take too long to explain this here.
Great video for the information!!
Feedback: The multiple stock video-audio interruptions in your published video without some sort of voice-over on it most of the time is very distracting to what is being discussed. Doesn't feel continuous to follow. It looks like full-stops. Way too many of visual full-stops.
Do continue with you great work! 👍
When will you drop the orange one in the intro?
I'm married to a Spaniard and have property and family in Spain, a country I first visited in 1982. I completely agree with this video. It gives me no pleasure to say it but Spain is a perfect storm of problems. There are other countries in the Euro Zone with their own unique set of catastrophic issues as well. I see no answer to the pension crisis until the collapse I'm afraid. Macron recently attempted it in France and it damn near bought down his administration and might still cost him the election in 2022. So he backed off just like Sarkozy did when he tried to reform. There is a heads in the sand level of entitlement mentality and all logic is dispensed with when the public try to deal with this problem. If governments had talked about it openly 30 or 40 years ago the public might be more willing to accept the necessary changes. However, Spanish politicians don't even want to discuss it today for fear of the inevitable collapse of votes. The ageing demographic of Spain, combined with its other formidable problems, is a Spanish and European time bomb.
There could be a way out if the government taxed companies less and that surplus went to a private pension for the worker or in his pocket for him to invest or dispose of . Obviously the state pension would have to come down too but it would be a shared responsibility between everyone involved. There has to be a limit on pensions because as it is there is huge disparity, some retired people get huge pensions proportionate to their wages, and in all reality they could've made private arrangements with their high earnings. The problem is that people rely on the state pension without giving it a serious thought on its unsustainability, and that could land people in a lot of trouble
Now i see why my grandma and grandpa moved to Spain despite knowing no Spanish before they got there
The same will happen everywhere. Just reduce the payments and drastically increase the retirement age. People with savings can retire on that and others will work longer
that is the only option that is viable.
Some jobs can not be done if you are 70.
"1.3 children born..."
I sure am glad I wasn't one of those .3 kids that were born. I like my limbs 😋
Always look forward to these videos
Is it just me or does this upbeat music clash horribly with the content :D
Spain, like the EU generally is in great need of reforms. The public sector is considered a gravy train with protected benefits and the political class get a pension for life regardless of number of years served. Enterprise is stifled by ridiculous taxation and anyone wishing to be self employed automatically loses half of their earnings to social security and other taxes despite the pathetically small earnings most have. On top of that public spending on vanity projects alongside graft and nepotism means a painful future unless drastic action is taken.
Send the pensioners to Zimbabwe for their retirement. That way they enjoy great weather and great lifestyle in their golden years.
Sure, let's do that. That way besides paying the pension we get all that money out of the economy with one move. A perfect recepy for euthanasing your country
A lesson in not relying on the state for anything.
don’t you worry yourself. In no time whatsoever you’ll be living under the new feudal world order, where a bunch of trillionaires, not the government, will decide your future. Good luck to you sir.
don't you know money printer go BRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
....I think that is also the sound of the old MG42. Which is more destructive?
Support for non-individualized retirement systems seems inversely proportional to financial literacy...
Like any system that relies on perpetual exponential growth, it will eventually break. It can be managed gracefully by small annual adjustments to both retirement age and benefits until things balance out, but more likely those working now should plan to have to pay in to a pension yet never receive anything from the state, as politicians generally can't do anything but kick the can down the road.
"Every girl is a special snowflake princess", then society collapses.
This snowflake princess can create new tax payers. They so much value.
@@alexwayne163 but they dont, 90% of them compete for top 10% high value males (prince on white horse)
@@googleuser4207 that's a good thing in my opinion. Only the best will continue to protectorate. The used up 30 years old will be open for the 90%
It actually started a long long time ago. The first pension claims were from a generation that never paid pension (as it did not existed) so they got their pension with...you guessed it the money still working people were saving for pension. So that created a gap that was filled by...investment. That investment got...exactly...out of hand leading to a new gap. In a growth pyramid this is no problem (so pension corporations filled their pockets) But now the pyramid is upside down and the gap is now a real problem. So people have to work longer and longer. And we all know that is not gonna fix it. Sooner or later a reset button is gonna be pressed and people will be financially ruined by it as their money goes up in smoke to get everything back to default.
Exactly, there will be people who paid in all their lives who get nothing out
How is it pay as you go if you’re paying for other people?
I have a number of pensions. State pension, Employer pension, Private pension and investments. Hard back in the day. but worth it now.
You would think if this age demographic when they were younger and earning money to the pension funds could have built a nest egg?
Sure but if you were promised enough of a state and working pension to live of, you can see why you might trust your country to provide.
how much are the younger people investing now???????
Portugal is in a similar situation.
This is pretty dire...
Brazil as well. I guess the apple doesn't fall far from the tree after all.
Actually, as I said earlier, Portugal solved the problem by increasing the year of retirement...
@@diogorodrigues747 That doesn't solve the problem, that will only slow it down.
@@gafanhotogamer5993 Right, but otherwise, and with lots of cultural problems, I don't see what they could make...
The problem is that many women are pushed to work and do not have the conditions to raise children, and old people work for a long time and do not leave jobs for the young.
I want to know where he got the paint from @ 4.27.
Time to ditch euro currency. It was a bad financial experiment.
Never.
It definitely was. Countries like Portugal, Greece and Spain with a currency made to fit the German productive system, what could go wrong?
Spain received many Euro's. They can leave, but I doubt it will be easy. A Spexit will be the end of Spain.
@@yurichtube1162 It's not about leaving the EU but the eurozone, it's not the same
Scotland wants to join the euro!!!!!
Spain spends more on pensions than education and healthcare (one of the best in the world) combined and still some leftover
We also spend the same in education as we spend in debt interest payments (~10% public expenditure)
Same in Poland.
As it says, some previous comment about this problem, other countries also have it, but it worries me more, and this is not mentioned, it is that in Spain, they have made policy with pension money, that is, quotas are subsidized to the new self-employed, and non-contributory pensions are paid, and this unbalances the accounts, these should be paid from the general budget of the state.
please mention the subtitles as well.
thanks
Is this the same country, the government of which boldly planned to launch the universal basic income in the spring of 2020?
I think they were gonna go away with pensions and replace it wit UBI.
But...yeah.
Yes.
@B Job
LOL
alse we are the same country that spend more money in increasing public salaries than on the universalbasic income
"socialism, it just works" - Todd H. Marx
More should be invested into the youth so when they get old they don’t have to rely on the government..
The govt doesn't have any money to invest in discretionary/investment any more. It all goes to healthcare and pensions 😅
would be good to complement this information with some additional articles to read or sources that can provide more detail
look it up, there's plenty and easier to get than ever.
Could increased automation deliver the same GDP with fewer workers? If yes, then as long as that GDP is shared, everyone should be able to continue the same lifestyle. (If I’ve missed something, please reply. Even link to videos and articles).
It could, but would you work harder so that someone else doesn't have to?
@@juliantheapostate8295 look up a ranking of the world’s richest people (yes, I know the rankings are perfect). Can you name the people on this list that don’t work?
(Start at the wealthiest person and work your way down the list).
I think you’ll find that most people would still choose to work if they find their work fulfilling.
@@juliantheapostate8295 Automation will remove a lot of the least fulfilling employment positions.
@@juliantheapostate8295 the richest women in Australia was sued by her kids. She is also overweight. Maybe she would have worked harder as a parent and harder in the gym.
Government is not the solution to your problem. Government is the problem!
Exactly.
The entire world is in the same boat. Including America. Especially America.
So the issue is the voters. They do not want pension reforms.
Stop public service jobs in Spain or at least how they allow the person to pay for the exam to publicly serve and take as many sick or holiday days without being able to be sacked. The stress and delays it causes is outrageous! #changethesystem
Thank Goodness UK got out of this mess
Amen, we dodged a bullet.
Isn't this a 'Ponzi scheme' pension?
Will there be many pensioners left after COVID...?
Well that was a pleasant surprise. Hi Grant.