Spain's Pension Costs Hit Record 14.5 Billion Euros as Madrid Rally Draws 25,000

Spain's monthly pension spending reached a record of almost 14.5 billion euros ($16.2bn) this year, a figure that brought about 25,000 people into Madrid on Saturday to show support for the state pension scheme.

Demonstrators arrived from around the country and walked from Atocha train station along the Gran Via, carrying banners that read "protect and guarantee our pensions." They want payments to remain tied to inflation and are asking that the gender pension gap be closed.

Emilio Delgado, deputy spokesperson of the left-wing party Mas Madrid in the Assembly of Madrid, posted on X that "no pension should be below the minimum wage. A lifetime of work deserves a dignified retirement."

The system faces pressure from an ageing population, a low birth rate, stagnant wages, and a declining ratio of workers to each pensioner. As pensioner numbers and monthly payments rise, state funding covers a growing share of the costs.

The question of how pensions are adjusted has divided the two main political camps ahead of next month's general election. Prime Minister Pedro Sanchez has said the Popular Party plans to weaken inflation-linked increases if it wins, while pledging to keep the current system affordable if he stays in office. PP leader Alberto Nunez Feijoo said on Monday that his party would continue raising pensions in line with inflation if it wins the vote.

The rally took place during a wave of protests across Europe over the cost of living, school conditions, and alleged corruption.