Group of European Pensioners from Savings Banks and Financial Institutions


Index of documents > Euromeetings Magazine > Euromeetings Number 10

BEFORE starting to talk about pensions, it seems logical to define what they exactly are. Dictionaries define pension as the annual sum of money granted to someone either by the works or services he has performed or just because of someones graceful intention.

There are two types of pensions within the Spanish system: Contributory - Non-contributory.

Contributory pensions.- In order to be entitled to one of these pensions, one must have paid contributions to the Social security pensions scheme during all his working life, but also fulfil some others requirements regarding the amount of contributions and the age at the time of retirement. These are some other requirements, but these two are used to fix the amount of the pension. According to this, if one has paid contributions during 35 years or more, he would be granted 100% of this calculation basis. This basis is calculated according to the contributory basis used by the worker during the last 15 years, which are updated through each years weightings. In other words: the addition of all contributory basis modified by the proper weightings is divided by 180, and then the weighting of all the years of work and the reductions in case of early retirement are subtracted from this calculation basis. Nowadays, these deductions reach between 8% and 6,5% for every anticipated year of retirement. This percentage depends on the reasons for the early retirement.

The Social securitys pensions system is divided in several  schemes. Within contributory pensions, we have the following schemes: General, self-employed workers, rural workers working for other, self-employed rural workers, seamen, coal mining, domestic servants, accidents at work, occupational diseases and the mandatory disability and old age insurance (SOVI). All these schemes are applied to the following types of pensions: permanent disability pension, retirement pension, widows pension, orphans pension and relativespension.

On the first of June 2005, there were 7.947.278 pensioners for all the schemes, and the average pension was 610,77. The largest scheme is the general one, with a total of 4.523.118 pensioners and an average pension of 731,75, followed by the self-employed workers scheme, with 967.087 pensioners and an average pension of 445,94. The scheme with the lowest number of pensioners is the one of occupational diseases (44.488 pensioners and a 914,21 average pension).



As for the average pension, the first place is for coal mining scheme, with a 1.088,69 pension and 71.462 pensioners, followed by the one of occupational diseases (44.488 pensioners and a 914,21 average pension); the third place is for the general scheme (4.523.118 pensioners and 731,75).

Within the Social securitys general scheme, we find the following types of pensions (the figures correspond to 1st of June, 2005):



NOTE. In the Amountcolumn, figures are indicated in thousands of Euros.


We should not forget the mandatory disability and old age insurance (SOVI) scheme, since it covers retirement, widows and orphans pensions. The people entitled to these pensions must have paid contributions for more than 1.800 days between 1940 and 1966, or must have been affiliated to the workersretirement scheme prior to 1940. They must also be 65 years old or more, and they cannot be entitled to any other pension paid by any Social securitys scheme. We find 341.020 pensioners in this situation, who receive an average pension of 238,72.

It must also be highlighted that the total number of pensions within the general system, if we count all the schemes, reaches 7.947.278, which represent a cost of 4.853.997. The average pension is 610,77.

The source of all these figures is the web page of Spanish Social security body (Seguridad Social-Inserso).

Antonio Lozano

Vice-President of the Group - Spain