Moving to Spain has become one of the most popular British past times over recent years. Whilst it is true that most people do not stay there for the rest of their lives, what about those of you that do? How are you going to cope once you are no longer earning money? How much do you know about the Spanish pension system and what you are entitled to? Do you know anything at all? Is it as much of a mystery as Flamenco? Well don't worry; here is some basic information to get you started.
The social security system in Spain pays state pensions, generally from aged 65 onwards. The amount paid depends on contributions made over the 15 years previous to retirement, as well as on the total number of years of contributions (up to a maximum of 35 years). The maximum state pension is approximately 32,000 Euros per year.
Contributions are defined percentages of salary (up to a maximum salary of approximately 32,000 Euros), but self-employed people choose how much they wish to pay between a minimum of approximately 250 Euros per month, and a maximum of approximately 900 Euros per month. The pension they subsequently receive is related to the amount they have chosen to pay.
Expectations are that state pensions will be reduced in future years, given the increasing burden on the social security system as the population grows.
There is a well-developed private pension plan system in Spain, operated by insurance companies and banks. Contributions made to pension plans are tax-deductible (up to a maximum of 10,000 Euros per year), and there is a wide choice of plans available. Generally speaking financial advisers suggest investing in potentially high-profit plans in the early years of contributions, switching to safer plans as retirement approaches. It is very easy to change from one pension plan to another, and to switch the investment from one insurance company (or bank) to another. The market is competitive and fund performance is transparent.
There are also personal investment plans (PIAS) which offer tax-free withdrawals on retirement if the withdrawal is taken in instalments as a pension.
English speaking financial advisers offer a pension planning service to help individuals work out how much money they will need in their retirement, and what they should be doing about it beforehand. So get in touch with someone who really knows about Pensions in Spain, someone who speaks your language and who can answer all your questions. Give yourself peace of mind and prepare for your retirement, because one thing is for sure; it will happen.
Esl Jobs In Spain
The hunt for employment in Spain is not trouble-free. It is most predominant outside the main cities where unemployment is
elevated, also, if you do not meet the criteria to live and work in Spain as an associate of an EC nation, then getting
hold of a residence card is time-consuming and maddening. US citizens and other outsiders without the right to seek and
obtain employment in Spain must have their employment permitted by the Spanish Ministry of Labor and acquire a visa ahead
of entering the country. You should not plan to find employment here unless you have a confirmed job offer, particular
qualifications, or experience for positions which there is a high demand.
If you are looking for a particularly high paid job then you should speak fluent Spanish. Being attracted to Andalusia by
its climate and standard of living is laudable but does not rate greatly as an employment qualification. Many people
switch back to self-employment or start a business to earn a living, even though that path is sprinkled with pitfalls.
Many foreigners do not do enough homework before coming to Spain. While hoping for the best, one must prepare for the
worst of circumstances and be positive that you have adequate emergency resources to last until you obtain proper
employment. Always have a contingency plan to fall back on. Also, don't forget to take into account the currency exchange
from your current monetary system.
In the current decade, Spain has been experiencing occupational shortages, which partly come from a shortage of affordable
housing in Spain. So young people often still live with their parents and cannot afford their own housing thus do not have
the mobility of taking up their occupations in other cities where they might be able to get jobs. This is a structural
problem in Spain. Spain in recent years has been promoting immigration to address its labor shortage. This has somewhat
worked as immigrants have an employment rate of 70% compared to Spanish nationals of 55% as a study in 2002 showed.
According to the study immigrant workers are mostly employed in construction, agriculture and the service sector such as
hotels & catering, domestic, and personal services.
The labor shortage relates mostly to skilled workers. In the apparel, industry in Spain such a shortage is presently a
problem. Due to the lack of skilled labor in the industry, factories are forced to use unskilled labor resulting in a
lower quality in the finished product. This problem has been reported by sewing factories, industrial fabric productions
and the fashion industry as a whole.
Another Spanish industry suffering from shortage of skilled labor is Spain's important wine production industry.
Especially during the harvest season, the industry depends largely on foreign workers every year. Due to Spain's stringent
bureaucracy every year, thousand of illegal immigrant workers work on the wine hills. The Spanish government has taken
severe action against that problem in the recent years, resulting in less illegal immigrant workers and a shortage. There
is further strong demand for immigrant workers in Spain as forecasts indicate that in the next 15 years the labor market
will need another 6 million people to make up for Spain's demographic collapse.
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Both Robert D. Thomson & Tommy Stephens are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Robert D. Thomson has sinced written about articles on various topics from Dog Care, Real Estate and Dental Practice. David has lived in Spain for over 10 years and is a content contributor for Spanish Pensions site, as well as. Robert D. Thomson's top article generates over 2240000 views. to your Favourites.
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