Spain moves towards a demographic scenario that increasingly resembles that of Japan: fewer births, more longevity and a demographic structure that concentrates more and more weight at the top of the pyramid.
This transformation is forcing Spain to reformulate the relationship between retirement and work with a new modality called reversible retirement, which aims to “recover” those who they have already retired to reintegrate them into the labor market and relieve pressure on the pension system.
A country that ages rapidly. As they point out statistical dataat the beginning of 2024, Spain reached 48.6 million inhabitants and in 2025 we have already overcome the 49.1 million inhabitants. Of them, about 9.93 million were 65 years old or older (20.4% of the total), and about 2.95 million were over 80 years old (around 6.1%).
This means that the demographic pyramid has reached cruising speed in the widening of its peak, while the base narrows at the bottom. decline in birth rate. In 2024, only 318,005 babies were born, which represents a historic low and 0.8% less than the previous year. as published The Country. With a life expectancy that already exceeds 84 years, the country faces a growth of number of pensioners and a progressive decline in the active population. The worst nightmare for a government.
Japan: the canary in the mine. Japan has been facing a reality for years that now reaches Spain, so Spain can take advantage of its learnings to adapt its policies to the new demographic reality. The current situation in Japan is a snapshot of what awaits us in the near future.
According to data of The Japan Times, In 2024, 29.4% of Japan’s population was 65 years old or older. The extension of working life is now almost a norm. In 2023 they worked 9.1 million Japanese over 65 years of age, chaining twenty years of consecutive increase. More than 33% of retirees between 70 and 74 years old were still active In 2022 and from 2021, companies are obliged to offer employment up to 70 years of age. This retention of the workforce beyond retirement age has allowed Japan to maintain its contributions, reduce pressure on pensions and mitigate the labor shortage experienced.
Delaying retirement is not enough. Spain (as well as the rest of Europe) has been progressively increasing the legal retirement agea process that will culminate in 2027 with the ordinary age set at 67 years. However, the demographic data published by the Bank of Spain show that these measures, although necessary, are insufficient.
The population that joins the labor market is inferior than the one leaving, and the constant drop in the birth rate implies that this trend will be accentuated in the coming years, so the balance between retirements and incorporations will continue to be insufficient, and the immigrant population He can’t even compensate for it.
Reversible retirement: Spain is taking note. In July 2025, the Ministry of Inclusion and Social Security presented the proposal for a Royal Decree that transforms the current flexible retirement to make it more attractive for people who have already retired.
The reversible retirement proposed by the Government allows those who have already retired, return to the labor market without losing their status as pensioners or penalizing their pension, but rather increasing it while become active again. Its objective is clear: encourage work beyond the legal retirement age to compensate lack of labor that the labor market suffers and, at the same time, alleviate the growing spending on pensions.
Working improves pensions. The Ministry’s proposal eliminates previous restrictions and allows make pension compatible with work employed and adds the novelty of being able to do it also on one’s own, as long as the beneficiary had not been self-employed in the previous five years. For employed employment, a working day for retirees of between 40% and 80% of that of a full-time worker is allowed. The pension is reduced proportionally to the working day: if someone receives a pension of 1,200 euros and works half-time (4 hours), they would receive a pension of 600 euros plus the half-time salary.
He big change It is in the 10% and 20% incentives for those who return to work after six months since they retired. Continuing with the previous example, the compatible pension of 600 euros would increase by 10% (60 additional euros), reaching 660 euros plus your salary. If the working day were 70%, the increase would be 20%. The reform seeks make reintegration attractive, eliminating the feeling of penalty that until now discouraged this modality.
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