In response to a combination* of sociological and economic factors, several changes to pensions and social security in Spain have been implemented.
Royal Decree Law 8/2010/Law 27/2011 makes several notable changes, including an increase to all pensions in 2012, an inflation offset for minimum pensions, and an additional reassessment for widows provided for by law.
Specifics of the amendments include a switch from a mandatory to a flexible retirement age, as well as a plan to increase the relation between the amounts contributed during working life with what will be received as a pension.
The social security reform will go into effect January 2013 and will be progressively introduced during a 15 year transition period ending in 2027. Starting in 2027, every 5 years the parameters related to the scheme will be revised according to the estimated average life expectancy for people of 67 years of age.
The standard retirement age will increase gradually from 65 to 67 by 2027, and a pension increase will be available as an incentive to promote a voluntary increase of retirement age.
*In addition to the ongoing economic turmoil, the country has experienced a declining birth rate and simultaneous uptick in life expectancy, as well as a decline in the length of work service in the population as a whole.
Atlas Venture helps entrepreneurs build market-leading companies, and today that means they need to perform well on an international stage. Recommending High Street Partners to our portfolio has been a way for us to help ensure their success when venturing overseas.
High Street Partners