Pension system sustainability debated in Panama and Spain

Experts and political figures are addressing the sustainability of pension systems amid demographic shifts and economic challenges. In Panama, authorities and international regulators convened to discuss the future of pension funds. Vice Minister of Economy Fausto Fernández noted that increased longevity and changing population structures require new investment strategies and the diversification of fund structures to ensure long-term financial stability and social protection.

In Spain, former Vice President Pablo Iglesias defended the public pension system against claims of insolvency. He argued that debates regarding sustainability are often used to promote privatization. To secure funding, Iglesias proposed increasing contributions by removing caps on maximum contribution bases and implementing a progressive contribution system similar to income tax. He also suggested that state budgets could provide additional support if necessary to maintain the contributory nature of the system.