Spaniards are living longer and longer, but fewer children are being born to sustain the pension system. This demographic shift poses numerous economic and social challenges that make it necessary to focus on how the contribution of different age groups to the welfare system is changing, key aspects for anticipating the economic and social challenges of the coming decades, especially in a context of accelerated demographic aging.
This reality is what the report “Income and Expenditure of Spanish Households by Age and Gender” has set out to analyze, promoted by the Ageingnomics Research Center of Fundación Mapfre and the Fundación de Estudios de Economía Aplicada (FEDEA). Specifically, the aim of the document is “to better understand how much members of Spanish households earn and what they spend on, as well as to reveal what they receive from and contribute to the public system according to their age and gender.”
Broadly speaking, the study highlights that seniors, understood as those over 55 years of age, account for 68% of household savings and 43% of total economic resources, figures that show they have become an economic driving force for the country. This contrasts with the situation of young people, who are highly dependent on their families and on the support the Government can provide. In this context, the document indicates, Spaniards between the ages of 30 and 54 emerge as the productive engine, as they finance a significant portion of public consumption and social benefits.
“Those over 55 are not merely recipients of benefits, but a group with enormous economic weight: they are savers, active consumers, they sustain family networks through intergenerational transfers, and they constitute a fundamental pillar of financial and patrimonial stability,” stressed Juan Fernández Palacios, director of the Ageingnomics Research Center of Fundación Mapfre, at the presentation of the report on Wednesday. He believes the study makes it possible to understand more precisely the economic impact of aging and to highlight the strategic role of the senior economy in our country.
Fernández Palacios also noted that “understanding their economic behavior is key to designing public policies and business strategies adapted to this new demographic reality.”
Ángel de la Fuente, executive director of Fundación de Estudios de Economía Aplicada (FEDEA), also spoke at the event, emphasizing that “the analysis shifts the focus from the household as an aggregate unit to individuals, making it possible to observe with precision their income and expenditure patterns throughout the life cycle and the redistributive flows that occur through the public sector and within households themselves. This offers us a much more complete and detailed picture of how resources are generated, redistributed, and used in Spain.”
Who receives, finances, and saves the most
The report quantifies the average fiscal balance by age and gender, that is, the difference between what a person contributes in taxes and social contributions and what they receive through public benefits and services. In this regard, the analysis by age shows that people do not maintain the same balance between income and expenditure throughout their lives.
During childhood and youth (up to age 29), labor income is low and consumption is financed mainly through private transfers among family members and public spending, especially on education and healthcare. This group accounts for only 21.6% of total resources (330.983 billion euros). It is, therefore, a stage of economic dependency financed by families and the State.
Between the ages of 30 and 54, most workers are concentrated, making it the age group with the greatest capacity to generate income and contribute to the system. This group mobilizes a total of 606.852 billion euros in resources, accounts for most labor income, and pays more than half of the total collected in taxes and social security contributions from the population. It is therefore the main net contributor and the financial pillar of the welfare system, financing a large part of public spending directed at young people and seniors.
From age 55 onward, the pattern changes significantly. This group, which in 2022 already numbered 16.1 million people, 34% of the population and generating 32.8% of GDP, concentrates 592.719 billion euros in resources, including market income and benefits. Seniors receive 183.070 billion euros in public monetary benefits, mainly pensions; they contribute 138.173 billion in taxes and social contributions (representing 34.5% of the total); and, moreover, they account for 68% of total household savings (73.578 billion euros).
mods4mods on
>Broadly speaking, the study highlights that seniors, understood as those over 55 years of age, account for 68% of household savings and 43% of total economic resources
This is catastrophic.
No_Conversation_9325 on
Isn’t this a worldwide trend? Younger people do not generate wealth, those days are over.
Edit: Looks like I have to clarify it in detail – “wealth for themselves”
LaurestineHUN on
There won’t be fertility trend reversal until young people are richer than their parents.
SaraHHHBK on
This is fine 🙃
Mister_Spaccato on
I hate the fact that billionaires bought media to try and persuade us that this is a generational war, while this is class war. We can’t blame old people for owning a half a million home they bought 40 years ago for 50k. Homes shot up in price because banks have become more liberal in handing out mortgages, because construction has slowed down, and because new housing stock has been mostly absorbed by wealthy individuals and organizations.
soypepito on
There is a hardcore campaign from the elites trying to blame seniors for what elites do, which is draining the wealth from everyone, not only young people.
They used to blame immigrants, now they blame old people.
20ldl on
Excuse my ignorance but isn’t this normal? Given seniors have (in theory) worked their whole lives and thus accumulated wealth?
saposapot on
Sign of the times. Multiple problems coming together but starts at seniors being house owners in a market where house valuation jumped tremendously creating a huge gap between who owns and who can’t afford to own.
I would love to know the cost of housing for each age group. That would probably show why savings are like that.
Altruistic-Berry-31 on
Damn what’s with the wave of Spanish news lately?
(Please send help)
kbcool on
Where’s the news? People have always accumulated assets as they age and have relatives die and leave them more assets.
Does anyone actually believe your average 20 year old has ever had more than your average 60 year old?
I know it’s not fair. It’d be great to be rich at 20 but we all know we would blow it on a fancy car and first class plane tickets so wouldn’t be rich anymore
KanyeWestsPoo on
The system is completely rigged against young people
Haspic on
how about blaming billionaires instead of each other
SeriesDowntown5947 on
They will pass it on to other seniors when they pass on. And the other seniors may pass it on. Or pass on passing and blow the lot in Vegas
sapperlotta9ch on
they had years to save money, so what is the surprise really
Apprehensive_Rip9731 on
Boomers owning 3 houses each: young people don’t want to work anymore.
Meanwhile the market has the worst conditions ever and you are lucky if you earn a bag of peanuts
PJKenobi on
Its like over there too huh?
-Yank Lurker.
vhs431 on
Juniors hold almost 70% of Spanish years left to live 🙄
iamagainstit on
gerontocracy.
APlatypusBot on
Would be good to have a graph showing savings mapped against age.
It makes sense that seniors have the most savings, but past a certain age surely they’re spending it reasonably quickly instead of hoarding it right?
6-foot-under on
¡Expropriese!
Just kidding.
Jon_Iren on
Los mayores de 55 años. Un 35% de la población
Viendo la pirámide demográfica ¿Qué alternativa de distribución hay? ¿Que tengan los ahorros los españoles de 0 a 18 años?
Difficult-Cricket541 on
Better not show the movie the The Purge in spain.
_Djkh_ on
People that had their whole life to save money have more savings. Consider my mind blown.
Time-Maintenance2165 on
What percentage did they hold over the last 50 years?
Is this a meaningful change or following roughly the same percentage it has been?
Muchaton on
Capital + Land + Work = new wealth.
What happens when all land and capital is unavailable to workers ?
27 Comments
TRANSLATION
Spaniards are living longer and longer, but fewer children are being born to sustain the pension system. This demographic shift poses numerous economic and social challenges that make it necessary to focus on how the contribution of different age groups to the welfare system is changing, key aspects for anticipating the economic and social challenges of the coming decades, especially in a context of accelerated demographic aging.
This reality is what the report “Income and Expenditure of Spanish Households by Age and Gender” has set out to analyze, promoted by the Ageingnomics Research Center of Fundación Mapfre and the Fundación de Estudios de Economía Aplicada (FEDEA). Specifically, the aim of the document is “to better understand how much members of Spanish households earn and what they spend on, as well as to reveal what they receive from and contribute to the public system according to their age and gender.”
Broadly speaking, the study highlights that seniors, understood as those over 55 years of age, account for 68% of household savings and 43% of total economic resources, figures that show they have become an economic driving force for the country. This contrasts with the situation of young people, who are highly dependent on their families and on the support the Government can provide. In this context, the document indicates, Spaniards between the ages of 30 and 54 emerge as the productive engine, as they finance a significant portion of public consumption and social benefits.
“Those over 55 are not merely recipients of benefits, but a group with enormous economic weight: they are savers, active consumers, they sustain family networks through intergenerational transfers, and they constitute a fundamental pillar of financial and patrimonial stability,” stressed Juan Fernández Palacios, director of the Ageingnomics Research Center of Fundación Mapfre, at the presentation of the report on Wednesday. He believes the study makes it possible to understand more precisely the economic impact of aging and to highlight the strategic role of the senior economy in our country.
Fernández Palacios also noted that “understanding their economic behavior is key to designing public policies and business strategies adapted to this new demographic reality.”
Ángel de la Fuente, executive director of Fundación de Estudios de Economía Aplicada (FEDEA), also spoke at the event, emphasizing that “the analysis shifts the focus from the household as an aggregate unit to individuals, making it possible to observe with precision their income and expenditure patterns throughout the life cycle and the redistributive flows that occur through the public sector and within households themselves. This offers us a much more complete and detailed picture of how resources are generated, redistributed, and used in Spain.”
Who receives, finances, and saves the most
The report quantifies the average fiscal balance by age and gender, that is, the difference between what a person contributes in taxes and social contributions and what they receive through public benefits and services. In this regard, the analysis by age shows that people do not maintain the same balance between income and expenditure throughout their lives.
During childhood and youth (up to age 29), labor income is low and consumption is financed mainly through private transfers among family members and public spending, especially on education and healthcare. This group accounts for only 21.6% of total resources (330.983 billion euros). It is, therefore, a stage of economic dependency financed by families and the State.
Between the ages of 30 and 54, most workers are concentrated, making it the age group with the greatest capacity to generate income and contribute to the system. This group mobilizes a total of 606.852 billion euros in resources, accounts for most labor income, and pays more than half of the total collected in taxes and social security contributions from the population. It is therefore the main net contributor and the financial pillar of the welfare system, financing a large part of public spending directed at young people and seniors.
From age 55 onward, the pattern changes significantly. This group, which in 2022 already numbered 16.1 million people, 34% of the population and generating 32.8% of GDP, concentrates 592.719 billion euros in resources, including market income and benefits. Seniors receive 183.070 billion euros in public monetary benefits, mainly pensions; they contribute 138.173 billion in taxes and social contributions (representing 34.5% of the total); and, moreover, they account for 68% of total household savings (73.578 billion euros).
>Broadly speaking, the study highlights that seniors, understood as those over 55 years of age, account for 68% of household savings and 43% of total economic resources
This is catastrophic.
Isn’t this a worldwide trend? Younger people do not generate wealth, those days are over.
Edit: Looks like I have to clarify it in detail – “wealth for themselves”
There won’t be fertility trend reversal until young people are richer than their parents.
This is fine 🙃
I hate the fact that billionaires bought media to try and persuade us that this is a generational war, while this is class war. We can’t blame old people for owning a half a million home they bought 40 years ago for 50k. Homes shot up in price because banks have become more liberal in handing out mortgages, because construction has slowed down, and because new housing stock has been mostly absorbed by wealthy individuals and organizations.
There is a hardcore campaign from the elites trying to blame seniors for what elites do, which is draining the wealth from everyone, not only young people.
They used to blame immigrants, now they blame old people.
Excuse my ignorance but isn’t this normal? Given seniors have (in theory) worked their whole lives and thus accumulated wealth?
Sign of the times. Multiple problems coming together but starts at seniors being house owners in a market where house valuation jumped tremendously creating a huge gap between who owns and who can’t afford to own.
I would love to know the cost of housing for each age group. That would probably show why savings are like that.
Damn what’s with the wave of Spanish news lately?
(Please send help)
Where’s the news? People have always accumulated assets as they age and have relatives die and leave them more assets.
Does anyone actually believe your average 20 year old has ever had more than your average 60 year old?
I know it’s not fair. It’d be great to be rich at 20 but we all know we would blow it on a fancy car and first class plane tickets so wouldn’t be rich anymore
The system is completely rigged against young people
how about blaming billionaires instead of each other
They will pass it on to other seniors when they pass on. And the other seniors may pass it on. Or pass on passing and blow the lot in Vegas
they had years to save money, so what is the surprise really
Boomers owning 3 houses each: young people don’t want to work anymore.
Meanwhile the market has the worst conditions ever and you are lucky if you earn a bag of peanuts
Its like over there too huh?
-Yank Lurker.
Juniors hold almost 70% of Spanish years left to live 🙄
gerontocracy.
Would be good to have a graph showing savings mapped against age.
It makes sense that seniors have the most savings, but past a certain age surely they’re spending it reasonably quickly instead of hoarding it right?
¡Expropriese!
Just kidding.
Los mayores de 55 años. Un 35% de la población
Viendo la pirámide demográfica ¿Qué alternativa de distribución hay? ¿Que tengan los ahorros los españoles de 0 a 18 años?
Better not show the movie the The Purge in spain.
People that had their whole life to save money have more savings. Consider my mind blown.
What percentage did they hold over the last 50 years?
Is this a meaningful change or following roughly the same percentage it has been?
Capital + Land + Work = new wealth.
What happens when all land and capital is unavailable to workers ?
As they should. They built this country.