Andorra Pension Chief Urges 20-Year Transition to Raise Retirement Age to 67

Jordi Cinca, president of the pension reserve fund's management committee, has advocated for a lengthy transitional period of up to 20 years to implement pension reforms, including a gradual rise in the retirement age to 67 years, to limit disruption for long-term contributors.

In an interview with the Andorran News Agency (ANA), Cinca emphasised the need for caution in shifting the pension model. He proposed extended transition phases—potentially lasting two decades—to ensure minimal impact on those who have contributed under the current system for many years. For instance, a 64-year-old nearing retirement might only need to work 15 extra days, a 62-year-old three months more, a 60-year-old one additional year, and a 50-year-old two years, rather than an abrupt jump to 67.

Cinca warned that delaying reforms risks exhausting the reserve fund, forcing the state to cover shortfalls of 300 to 400 million euros annually in peak deficit years. With the government's budget around 700 million euros, such payouts would deliver a "brutal" blow to public finances. "We must act responsibly and not turn our backs on the issue," he said.

While reforms would ideally have started five years ago, Cinca noted that current reserves act as a financial "cushion" to ease the shift. Attempting changes after depletion would lack this buffer, complicating gradual measures.

He dismissed transition cost estimates as "purely speculative," stating the fund's commission would not project figures until a concrete reform plan emerges.