The Chairman and CEO defended that the lack of savings needs to be dealt with globally: “Reforming the pension system to make it sustainable only solves part of the problem”

The 4th Spanish Congress of Executives was celebrated in Madrid last week. The event’s agenda included the analysis of the 20 trends that will change Spain and the world.Specifically, Huertas’ talk was about aging, a global issue that is especially marked in advanced countries; he also mentioned the transformations that need to happen to be able to face this situation.

As for Spain, the Chairman and CEO of MAPFRE looked into the impact on several sectors such as education, healthcare and leisure, among others. However, he mostly addressed the issue of savings. Huertas stressed that demographic projections warn that within only 15 years, in 2031, one in every four people will be over 65; and there will not be enough workers to contribute to the pension system since 62 percent of the population will not be the right age to work.

He added that the current pension system is not sustainable. This year will close with 18,000 euros in deficit and this problem is getting more serious because the Baby Boom generation is starting to retire. For this reason, Antonio Huertas defended that the lack of savings needs to be dealt with globally. “Reforming the pension system to make it sustainable only solves part of the problem. We should also create a second-pillar savings scheme linked to working life so that workers can save to generate a pension that complements their state pension.”

Antonio Huertas finished by saying that it is necessary that large portions of the population have access to this model for generating complementary savings. As such and following the example of other countries, this should be regarded as a mandatory or semi-mandatory scheme for all workers.