Overview

• Spain’s public pension replaces about 90% of pre-retirement income for mid and low earners, with an average monthly payout of €1,800, but forecasts of a 30.5% over-65 population by 2055 and a €65 billion deficit raise funding concerns
• Only one in three retirees hold supplementary private pension products, reflecting a consumption-first culture and limited tax incentives for individual plans capped at €1,500 annual contributions
• Experts propose automatic payroll deductions of 5% to build private retirement savings, pointing to UK and Ireland schemes where opt-out rates remain below 7%
• Financial institutions are promoting annuities and home-equity tools—including reverse mortgages and nuda propiedad sales—to convert property into guaranteed lifetime income while preserving residence rights
• Public subsidies for long-term care cover €200–€720 monthly but fall short of actual family costs up to €2,000 per month, with Alzheimer’s care potentially requiring €100,000 in additional spending