's contributory pension expenditure is projected to reach approximately 200,000 million euros by 2026, remaining the largest item in the consolidated budget. With over 9.5 million pensioners, the system faces a peak in spending by 2050 as baby boomers retire.
Economy Minister oversees a system where has approved the first examinations of the 2021 reform. While the legal retirement age will hit 67 by 2027, the effective age is 65.4. Direct state transfers currently cover the deficit.
Fedea estimates spending will rise by 5 percentage points of GDP, though the contributor-to-pensioner ratio has returned to 2.51. Measures like the Intergenerational Equity Mechanism aim to fund reserves as leaders commit to inflation-linked pension revaluations.