FINANCIAL INSTRUMENTS FOR
Lately in Valencia – more precisely in the Foundation
Bancaja- a very complete work about the “financial instruments for retirement”
was presented by M. José Luis Olivas Martinez, President of
Javier Adserá, President of the Foundation for Financial Studies (FEF),
draws on a detailed report analyzing the situation of the current pension
scheme, which allows him to recommend the creation of a compulsory complementary
system, whether public or private.
This report mentions the position in which the demographic situation will
put the social security. “Nowadays, the most important population segment in
size corresponds to people aged between 30 and 34; in 2050, the largest age
group will be 70 to 74”, according to Adserá. The demographic
pyramid complicates the matter of pensions. He thinks that immigration relieved
this situation, but it is a false improvement since a high number of immigrants
stay in the country, get old, and have a similar birth rate than native people.
The report, under the direction of César Molinas, proposes to improve the
financial education of Spanish people as well as their knowledge of how the
social care system works.
Adserá insisted on the need of making the debate on the future of
pensions public. He considers that we must find a solution to this problem by
consensus at the beginning of a legislature, to avoid electoralism.
The director of
FEF asserts that if we want to maintain social equity, it is necessary to
increase savings and increase the age of retirement.
As for savings,
the report underlines the national specificity in the idea of savings on
property inheritance. That is why it proposes a reverse regulation of mortgage,
together with a complement such as an insurance of deferred income. The FEF also
asks for more fiscal generosity with some of the financial instruments for
Insurance and saving companies are required to stake on this kind of
“instruments which allow the transfer of longevity risks to the financial
The report even
includes a series of general recommendations to the Treasury, to the National
Institute of Statistics and to the insurance industry.
The conclusions drawn by Crispin Southgate and Chris Lewin on risk
management of longevity in the United Kingdom are very interesting.
An example of reform of the
public pension scheme is also attached to the report: “The case of
Sweden”, by Juan Pérez-Campanero. Due
to its length, we will only mention it.
In accordance with this will to increase the population’s financial
education, FEF and Bancaja have signed a collaboration agreement to promote
investigation, training and information about the financial and transactional
markets. Moreover, Olivas underlined the fact that Bancaja proposes products
especially adapted to the elderly.
Luis Antº. Tena
President of the
Association of Retired Staff and