Economic Resources & Support for Seniors: Pensions & Care in Spain
Economic Resources for a Worthy Life: Pensions
Ensuring a stable economic situation and maintaining the purchasing power of older people has become one of the central objectives of social policy aimed at this population group.
Pensions seek to supplement work income or compensate for situations of need presented to people by reason of retirement, old age, disability, or death.
Being retired gives the right to healthcare and pharmaceutical benefits for the pensioner, their partner, and their families, and to enjoy additional Social Security services such as homes for the elderly, day centers, and clubs, etc. Holiday programs are also available.
Contributory Pensions
These pensions aim to compensate for the loss of income after retirement. To be eligible, individuals must have contributed for a minimum period of 15 years (two of which must be within the 8 immediately preceding the time of application) and be at least 65 years old.
Non-Contributory Pensions
These pensions are for retirement and disability for citizens who lack sufficient resources and have not paid contributions or have done so insufficiently. To be eligible, individuals must be 65 years old, have no income or insufficient income, and reside in the territory for at least 10 years in the period between the age of 16 and the date on which the pension is claimed. Two of these years must be consecutive and immediately prior to the application.
The pension amount is determined annually by the Law of General State Budgets (PGE). Payment is split into 14 payments: 12 monthly payments and 2 extra payments.
Retirement pensions represent an important chapter in the country’s social spending.
The Toledo Pact
Generated in 1995, the Toledo Pact recommended a flexible retirement age, both early and normal, providing the possibility that contributions under the normal social security of these people are considered in terms of their own working hours and the pension that is left to perceive.
The pact also recommended maintaining the purchasing power of pensions through linkage to the Consumer Price Index (CPI) or similar formulas, supporting supplementary welfare savings and private pensions, regulating those systems, and updating tax incentives to create them.
Our pension system also includes ways of early retirement at 61 and 64 years of age with special considerations for mutual societies and the possibility of reconciling work and retirement from age 60 through partial retirement.
Retirement is also possible at 65 through flexible retirement (between 25% and 85% of a working day) with a proportional reduction of that benefit.
Support for Seniors Beyond Pensions
The goal is the development of older people without staying away from their everyday environment, where possible, at home. However, there are cases of elderly people who, due to their social and family situation, their degree of physical or mental disability, age, or economic status, require assistance from various centers and homes to improve their quality of life.
Day Centers and Clubs: Created by public or private institutions, these centers work as day centers. They provide information about the social security system and care, preventive healthcare, rehabilitation, podiatry, and socio-cultural activities. They also have common meeting places (cafeteria, library, etc.) to establish relationships of equality and promote community integration of older people, which is the primary goal of such centers.
The requirements for access to these services are different depending on the nature of the institution that promotes it. In most cases, the general requirement is to be 60 years of age.
The spouse or person residing in marriage with the partner may also enjoy the services of the center, even if they have not attained the age of 60.
Residential Care: We find homes in which the elderly live either temporarily or permanently. Temporary stays are of two types:
- Day Care in homes and residences: Aimed at people who cannot fend for themselves, this service aims to improve their communication and social relationships and provides individualized rehabilitation programs and occupational therapy. They are cared for 7-8 hours daily.
- Temporary stays in nursing homes: Typically month-long stays, usually during holidays. This service also enables better preparation of the disabled elderly to stay permanently in a care home.
However, various circumstances may advise that the elderly go to live permanently in the residence.
Types of Residences: There are different types of residences for seniors:
- Residences for Valid Seniors: Designed for those who can develop activities of daily living for themselves.
- Assisted Living Units: Provide adequate care for those users who may experience a worsening of their physical and mental conditions.
- Nursing Homes: Serve people who need the assistance of others. These homes are equipped with medical and specialist nursing staff, as well as facilities and equipment to facilitate care for these people.
- Mixed Residences: Increasingly frequent, these residences have the potential to serve both valid and assisted living residents.
There are also mixed or multipurpose residences that offer a combination of services.