Hello, Welcome to the 44th issue of Allison’s Ode to the Second Moment, a newsletter about the grave dangers of misspricing insurance. Spain You may not have heard about it, but Spanish pensions are in deep trouble—serious trouble. Spanish state pensions have a terrible combination of being exceedingly generous, an average 83% replacement rate, and facing unfavorable demographics, Spain has the world’s second oldest population after Japan. Reforms in 2013 increased the retirement age and encouraged people to work longer. But a generation of young, marginally-employed Spaniards means less tax revenue and a reckoning may be coming even sooner than projected.
Allison's Ode to the Second Moment
Allison's Ode to the Second Moment
Allison's Ode to the Second Moment
Hello, Welcome to the 44th issue of Allison’s Ode to the Second Moment, a newsletter about the grave dangers of misspricing insurance. Spain You may not have heard about it, but Spanish pensions are in deep trouble—serious trouble. Spanish state pensions have a terrible combination of being exceedingly generous, an average 83% replacement rate, and facing unfavorable demographics, Spain has the world’s second oldest population after Japan. Reforms in 2013 increased the retirement age and encouraged people to work longer. But a generation of young, marginally-employed Spaniards means less tax revenue and a reckoning may be coming even sooner than projected.