Record pension costs strain Madrid ahead of election vote

Monthly payments to Spanish pensioners reached a record 14.5 billion euros this year.

The cost surge fueled a protest in Madrid on Saturday, with approximately 25,000 people taking to the streets. The march occurred just before next month's general election. Participants traveled from across the country to join the demonstration. They moved from Atocha train station to the Gran Via, the city's busiest thoroughfare. Banners carried by the crowd demanded protection for state benefits. The primary goal is to keep pensions indexed to inflation. Organizers also called for the elimination of the gender pension gap.

The pension system faces pressure from multiple sources. An aging population and a low birth rate have reduced the number of workers supporting each retiree. Stagnant wages further limit the funds available for the scheme. As a result, the system relies heavily on state funding. The total cost has now reached nearly 16.2 billion dollars.

The funding question has divided the two main political parties. Prime Minister Pedro Sanchez argued that the right-wing Popular Party plans to weaken inflation-linked increases if it wins power. Sanchez pledged to maintain current protections if his coalition remains in office. He stated that the existing system remains affordable for the state.

Alberto Nunez Feijoo, the leader of the Popular Party, addressed the dispute on Monday. He said his party would continue raising pensions in line with inflation. Emilio Delgado, a deputy spokesperson for the Mas Madrid party, supported the demonstrators on social media. He wrote that a lifetime of work deserves a dignified retirement and that no pension should fall below the minimum wage.