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3. WHAT ECONOMIC FACILITIES FOR ELDERLY PEOPLE ARE THERE IN SPAIN?

1. Is there a state pension for everyone?

   Yes, there are two types: the self-contributive pension for those who have belonged to the social security system during their working lives, and non-contributive pensions for those, mainly women, who have not been in paid employment, and who do not have a high enough income, either personal or in the family unit in which they live.

2. If so, from which age and what is the amount?
   
   For both, the retirement age is 65, although, in the case of the self-contributive system, the person may take early retirement for diverse reasons. A person is entitled to a pension after 15, if he/she has a permanent or total incapacity, through either an accident or an illness.
   In the case of self-contributive pensions, the company or firm has the responsibility of withholding the requisite amount from the monthly pay cheque and lodging it with the Department of Social Security.
   The amount of the self-contributive pensions varies according to the amount paid by the worker throughout his/her working life; the minimum is 442,04 euros each month, provided that the spouse is not in receipt of a pension. If so, the amount is reduced to 376,6 euros each month. The non-contributive pension is of 251,86 euros each month. In both cases 14 payments are made each year. Those who have not been in employment for at least 15 years, but who have paid contributions to Social Security receive 300 euros each month. As well, if a person has earned nothing throughout his/her working life, there is income support called Social Welfare, paid by the regional governments, which ranges between 200 and 300 euros each month, in 12 payments for the year.
   To maintain the purchasing power of the pension, at the beginning of each year an adjustment is made according to estimated rises in the cost of living index. In addition, if there is a rise in the cost of living index greater than the anticipated, the appropriate compensation will be given to the pensioner, at the time of the estimates for the following year.

3. To what extent do employees have access to company pensions?
   
   Company pensions are agreed to in pre-retirement treaties between the company, the worker and the state.

4. What is the percentage of the last earned wages?

   It varies according to various factors:

   • Early retirement at 60 ................................................. 60%
   • Retirement at 65......................................................... 100%
   • Retirement for total incapacity..................................... 75 y 60 %
   • Retirement for permanent incapacity.......................... 100%

   Until now, the amount of the pension has been calculated from the amount earned in the last 8 years before retirement, divided by 96 + the coefficient of the I.P.C. The new law will change this gradually, until the calculation base uses the amount earned in the last 15 years before retirement.

4. Do employees often make use of private pensions?

It is becoming more and more common for private firms to initiate their own private pension/superannuation schemes. They do not exist in the Public Service. Many workers themselves contribute to private pension schemes.

Of those recently retired, who were born between 1940-50, it is not normal to be members of private pension schemes. Of those born between 1950-60, 50% have private pension schemes. Of those born between 1960-85, it is estimated that 75% have private pension schemes. It is anticipated that 100% of workers in the future will have private pension schemes.

5. Has there been a shift in the composition of pension schemes in the last 25 years?

Yes, there have been major changes, improvements, particularly in terms of collection and minimum amounts, and the creation of the non-contributive pension for those who don't reach the minimum income level, fundamentally as regards years of paying into the scheme and minimum quantities.

6. Are there special tax reductions for persons over 65?

Yes, if the person making the income tax statement does not earn the minimum, as set by the federal government, there are reductions for those over 65. Also, the state governments provide rebates for certain public services, etc.
If the amount earned exceeds that set, 21,050 euros each year, the person has to pay income tax, which varies according to the amount earned and to family circumstances.
Certain business entities and firms give pensioners discounts and/or exemptions for certain goods and services, (public transport, telephones, public museums etc). These benefits vary, and interested persons have to enquire at the source.

7. Is there supplementary income support for the elderly people?

Normally no, but yes if the person has an annual income below 6.000 euros and can prove the necessity. The support is given normally for things like spectacles, hearing aids, false teeth, for adaptations in the home where necessary, and for home help (see images).

8. Can senior receive housing benefits from the government (national, regional or local)?

There are national, regional and local programmes in which homes for the elderly are provided either to own or rent at low prices. There are also grants available for senior citizens to acquire housing. However, these programmes don't have much effect, given that most people, at retirement age, own their own homes.

9. What percentage of the income after taxes is spent on housing?
   
   Logically the amount varies according to the amount of the pension, the average of which is about 660 euros per month.
   Also, this question is difficult to answer precisely because in Spain 80% of the people own their own homes and the rest rent.

Translation: Margaret Craig