In recent years, the question of whether resources are distributed fairly among different age groups has become a frequent topic of discussion in Spain. The economic gap between older and younger generations has widened significantly, and this is no longer just a subject for debate but a reality confirmed by the numbers.
In the early 2000s, elderly people were the most vulnerable group in terms of income. Back then, their average income was 20% lower than the rest of the population. Today, the situation has reversed: Spaniards over 65 now earn on average even more than the rest of the country. Meanwhile, families with children and young people have dropped to the bottom in terms of income. Over the past two decades, the older generation has managed to improve its financial standing, while young people and families with children have found themselves in a more difficult position.
Poverty rates have shifted as well. In 2004, nearly a third of Spanish pensioners were on the brink of poverty; by 2024, that figure has been cut in half. Now, the greatest risk of poverty affects young people and children. The generational gap is evident not only in income but also in accumulated wealth. Those born between the 1940s and 1960s managed not only to acquire property but also to increase their assets significantly. Young families, on the other hand, face difficulties buying homes, and their savings have nearly halved over the past twenty years.
An important factor in this has been the rise in housing prices. The older generation bought apartments and houses before the sharp increase in prices, and now their property is worth much more. Young people, on the other hand, face high prices and difficulties obtaining mortgages. But it’s not just about real estate: over the past twenty years, elderly Spaniards have increasingly acquired additional assets and investments, further widening the generational gap.
The question is increasingly being raised in society: is it time to reconsider the social support system? Currently, many benefits and allowances for the elderly are provided regardless of their income, even though there are more and more well-off pensioners. For example, government travel programs and transportation discounts, which used to help the low-income, are now also available to those who do not face financial difficulties.
Spain’s pension spending exceeds the European average, while noticeably less is allocated to supporting families with children and combating social isolation. Experts believe that without changes in budget allocation, the generational gap will only widen. At the same time, there are no simple solutions: any reforms could cause discontent and upset the existing balance.
One of the reasons for the current situation is the end of the period of rapid economic growth that lasted from the 1960s to 2005. Back then, all generations benefited, but now, with the economy barely growing, tensions between age groups are intensifying. In times of stagnation, sharing resources becomes more difficult, leading to new conflicts—not only between social classes, but also within families.
