The Spanish government has reached an agreement with the trade unions to improve contributions, which has to make it possible to pay the pensions of the baby-boomers when they retire. But what is the small print of this negotiation? The financial director of 11Onze, Oriol Tafanell, details it in the current affairs magazine of Ràdio Ciutat de Badalona.

Thus, the first outline that the Spanish government and the CCOO and UGT unions have agreed on foresees that companies and workers will contribute 0.6% more to the social security system, through salary contributions over the next ten years. In this way, the increase for workers will be 0.2% and for companies 0.4%, figures that have not pleased the employers’ association CEOE, which has withdrawn from the negotiations.

However, Tafanell warns that the measure does not save pensions. “If you read the small print, I disagree quite a lot with the agreement,” he says. The reasons, according to the financial director of 11Onze, are that pensions will continue to rise because life expectancy is also increasing and that the baby-boomers will retire with high pensions because they have worked under good conditions. In short, the demographic and socio-labour context suggests that the new law could be insufficient.

But, above all, there is one thing that worries the financial director of 11Onze. “With this measure, the Spanish government has assured that it will collect around 0.2% of GDP, while it is estimated that at least 4% of GDP will be needed. Imagine the difference, there is still a very large gap,” he argues. In fact, some Spanish media are already pointing to an even bigger gap that would force a radical rethink of the pension system.

Accompanying for financial growth

Tafanell points out that the solution lies in being financially sovereign. “Spain has been bankrupt for some time now. You only have to look at how the country’s indebtedness has been growing. So what should we do? We have to worry personally about saving,” the 11Onze financial director says. 

For Tafanell, “there is not a lack of savings capacity,” as people have been led to believe, but rather a great deal of precariousness, but also a very great lack of financial culture on the part of the public. This, says the CFO, is partly the fault of traditional banking. That is why a proposal like 11Onze, which is a fincom, a community fintech, could be the key. “With people who explain to you in a transparent and honest way what is the best decision you can make to save,” he argues. 

The other pillar that must allow the pension system to be overcome, according to Tafanell, or at least provide enough financial sovereignty so that it is not a concern, is the community. “By creating a community, you ensure that there are high, medium and low incomes and, if you make good links, the former can help those who need it most,” he concludes.

11Onze is becoming a phenomenon as the first Fintech community in Catalonia. Now, it releases the first version of El Canut, the super app of 11Onze, for Android and Apple. El Canut, the first universal account can be opened in Catalan territory.