The discussion about pensions goes far beyond public pensions and / or private pensions.
The main premise is that the state must guarantee a economic subside, which any citizen could live with dignity – Non contributory pensions -. Other premise is, that the contribution for work during the work life, it will configure the amount of the pension – call it in this case contributory -. However we must have in mind that contributions which the workers do today, these aren ́t saved in anywhere, it ́s just that with them are paid the pensions of today’s retirees: we have in Spain a caring system of distribution.
By other way, the contributions to private plans of pensions, are a saving formula for the privileged part of the population which can enjoy of constant income during their lifetime or they have enough heritage. Currently half of the families in Spain cannot save according to the CIS.
For years, in order to calculate pensions, we have configured a equation with evident variables: number of contributors (in decline), amount of the contribution (in decline), demographic pyramid (unfavorable), years contributed (less, by unemployment), personal savings, years of savings, interest, citizen’s average life (increasing) … People who work in the world of Savings point out with mathematical logic that all variables predict a collapse of the pension system in not too long time.
Which seems to indicate that the minimum pension will be able to guarantee -more and more minimal-, but if we don ́t solve it, the next retired after work a lot of years, we will have a very hard old age because the cost of the average pension will drop significantly and the savings will be impossible for 50% of families.
Experts do well their analysis, however in this moment, pensions rather than analysis, we need proposals: social proposals. Yes, we must do politics, although that is not stylized.
In matter of pensions, there is a stare at the limbo prolonged, to avoid making decisions. Our politicians summon the Pact of Toledo, and for months technical experts in Pension Plans try to inspire Your Lordships … And as they do not get the pensions equation, they balance the equality with hammering: «And as I am missing 8 billion, I solve it With this new tax «or» I issue Public Debt, and solved it. » They are lazy, short-term, ruinous, and opposite to all the European Commission’s budgetary criteria.
If the equation is insoluble with the existing variables, the solution is to incorporate new variables that must be established with the logic of the 21st century: they must be enduring and non-ephemeral variables, necessary and not superfluous, having an economic value at the level Individual and also at the macroeconomic level. If to these evident conditions we add the possibility of the use of the personal technology for the measurement of these factors, we can perfectly well propose a scenario, in which we focus our objective, with the main objectives of humanity in the next decades: simple survival Of the planet.
To feed all the inhabitants of the planet or to establish a circular economy low in carbon with renewable energy sources, is unthinkable to obtain only by the agreement of the governments or the big companies. Not just with awareness or civic education. It is necessary to alienate the citizens of the world with regard to their behavior in any daily economic decision (their consumption) and other daily decisions (at work, travel, leisure, sports, health …), and that so far was reduced to regulatory policies towards business and education for citizens. This is insufficient, the objectives will be achieved by: economic incentive policies for citizens, through the economic awards offered by companies (CSR) and administrations, in the form of pension contribution.
In this sense the proposal was put together, which the AEFI (Spanish Association of Fintech and Insurtech) we wanted to present in attendance to the Toledo Pact, but which Your Lordships have not time to contemplate since December 2016. They have to innovate on pensions , precisely the parliamentarians who have to guarantee the pensions, is a further aberration. Certainly no parliamentary group moved a finger, so that the proposal wasn ́t listened .
Well, Your Lordships , they have been totally wrong : the European Commission in one of the most demanding innovation programs on the planet (H2020), They have seen the suitability of the proposal and they will finance it as a European project, within the Social Challenge 6: «innovative, inclusive and reflexive societies».
I will tell you, when a Spanish politician, from any party who would come down from the pulpit of demagoguery to take a real interest in the proposal for innovation in pensions, awarded in Europe and has just signed an agreement with China.
José Luis Orós Pineda (AEFI Delegate in Pensions, CEO of Pensumo)