Andorra Pension Chief Urges Youth to Buy Property for Retirement Amid Ageing Doubts

Jordi Cinca, president of Andorra's pension reserve fund commission, recommends that young people include property ownership in their retirement strategies, as it reduces future rent expenses and eases pressure on public pensions amid an ageing population.

Younger Andorrans increasingly doubt the pay-as-you-go system's long-term viability, accepting they may retire later than 65. Adrià Palmitjavila, head of Demòcrates' youth section, told the Andorran News Agency (ANA) that many in his generation realise "few of us will retire at 65" and it will occur "much later." He raised a core question: if current workers support today's pensions, "who will maintain it for us in the future?" Palmitjavila called for reforms to balance contributions across generations, safeguarding pensions for all without harming those near retirement while addressing the extended timelines for the young.

Cinca confirmed this widespread scepticism, noting some youth distrust the model, politicians, and reserve fund. He relayed a typical view from a 26-year-old: contributions made over a career would leave "not a duro" at 65, all spent on current retirees. Despite this, he urged immediate action, advising young people to consider: "When do I start investing?" This goes beyond the reserve fund to personal plans. Cinca explained that buying an apartment creates an asset that eliminates rent in retirement, meaning "everyone who acquires a home is purchasing a part of their retirement in the form, at least, of what they won't pay in rent," effectively requiring a smaller pension.

Anthony Francome, director of the Youth Forum, placed the debate in a broader European context, citing discussions at the European Youth Forum and Council of Europe. He observed that social security once relied on workers' contributions when they drove wealth creation, but automation and wealth concentration have shifted dynamics, necessitating funding reviews. Francome highlighted global ideas like universal basic income or taxing corporate automation, rejecting collapse narratives as a "false dichotomy" that breeds youth helplessness. Instead, "there are many ways to respond to this emerging need."

The Youth Forum is raising awareness through initiatives, including a 2026 labour rights study to assess current job realities before expanding to future pension expectations.