The future of retirement in Spain for new generations is nothing encouraging. According to the present and future report of Spanish youth, Prepared by the BBVA Foundation with the IVIEyoung people who retire in 2065 after having quoted only 30 years must postpone their retirement until 71 years. This extension of the work period is necessary to compensate for insufficient contributions throughout their lives.
The delay in the incorporation of young people into the labor market is one of the key causes. At present, the employment rate between 16 and 29 is 15 percentage points lower than in 2007, just before the economic crisis. This reality imposes a hard scenario for the children of the 'baby boomers', who will have to extend their working life for at least six more years to maintain a pension that allows them to preserve their standard of living.
To reach 965 a gross replacement rate of 90% (equivalent to the initial pension being 90% of the last annual salary), it will be essential to quote for at least 40 years, if you want to retire at 65, according to current legislation.
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The report warns that, without reforms, young people who access employment late and in precarious conditions will face more fragmented work careers and shorter contribution periods, deriving in much lower pensions. Therefore, the authors insist on the need to delay the legal retirement age beyond the current threshold. Only those who prolong their working life until the age of 71 They will maintain their purchasing power after retirement, unless the stability and duration of youth employment is significantly improved.
In addition, the increase in youth unemployment adds pressure to the system. In the first quarter of 2025, unemployment between children under 25 rose in 16,000 people, reaching a rate of 26.5%, Lhigher since the end of 2024. This reality hinders generational renewal and puts the sustainability of future pensions in check.
