Abstract
This study summarizes the traditional characteristics of the Spanish Social Security System (generally taken from the European model), the different legal reforms that have come into force in recent years and the degree of penetration of important financial groups in the mass media which increased with the last financial crisis as well as the role developed by the insurance and financial entities benefiting from the change of model. The conclusion is that we are at the beginning of an interesting change in the Social Security model, aimed at the capitalization of social contributions by the private sector, which will obtain significant economic benefits in the management of old-age risk.
Highlights
Is the market the solution to the problems of the European Social Security systems that emerged after World War II? Based on a pay-as-you-go basis—the technical translation of the values of professional and intergenerational solidarity—they seem quite unable to ensure their future sustainability in the mid and long terms due to increased life expectancy, lower birth rates and high unemployment rates
This consensus is not coincidental: for years, global financial power has landed in most mass media to create a “unique” solution for the crisis of pay-as-you-go models: its capitalization in the financial market
Performing occupational activities conditioned citizens belonging to or being registered with social security, and involved many other effects; e.g., workers’ needed to continue with this working relationship whenever the risk materialised, or the payments they made to the system
Summary
Based on a pay-as-you-go basis—the technical translation of the values of professional and intergenerational solidarity—they seem quite unable to ensure their future sustainability in the mid and long terms due to increased life expectancy, lower birth rates and high unemployment rates. Is the (financial) market the solution to the problems of the European Social Security systems that emerged after World War II? This diagnosis is not new: economic difficulties have accompanied Social Security ever since it started (Durand, 1953; Venturi, 1954)
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