A 5% Increase in the Pension Contribution Rate and Its Impact on Pensions

Abstract

One of the main measures proposed by the Government to improve pensions is to gradually raise the pension contribution rate by five percentage points, charged exclusively to the employer. This initiative has been the subject of extensive debate regarding the destination of the funds, the gradualness of its implementation, its impact on the labor market and, more recently, its possible impact on pensions. This article analyzes this last point, emphasizing the main factors that will determine the impact of the higher pension contribution rate on workers and pensioners. Continue reading...