Andorra Urges Pension Reform Amid Aging Population Crisis

**Andorra la Vella, 13 February 2026** – Finance Minister Ramon Lladós emphasised the urgent need for pension reform during a colloquium with the Andorran Family Business Association (EFA) on Thursday, stating that the current system cannot support future generations amid projections of Andorra's population exceeding 100,000 by 2040, with one in three residents over 65.

Addressing business leaders, Lladós highlighted the challenge of sustaining pensions without immigration, warning that workers could not bear the burden through contributions or taxes alone. He called for a shift toward a capitalisation model complemented by private savings, urging new arrivals to bring their own "backpack of savings." EFA representatives, including Creand Crèdit Andorrà CEO Xavier Cornella and former CASS president Josep Delgado, pressed for swift action, expressing concern over delays.

The discussion exposed stark divides between Democrats parliamentary group president Jordi Jordana and Social Democratic Party (PS) deputy group president Pere Baró. Jordana, a pensions commission member, said the system should have been overhauled since 2005 and advocated transitioning to individual "personal piggy banks" for retirement, with solidarity elements. He stressed the technical and social difficulties of the switch to avoid overburdening young workers and rejected higher state spending or taxes. Jordana indicated the parliamentary majority would soon present a draft reform text to resume talks, seeking a substantial package rather than short-term fixes of six months. He noted "green shoots" of progress but called for urgency, adding that voters would decide parties' efforts at the ballot box if deadlock persists.

Baró defended a fully public system managed by the CASS, funded by higher healthcare taxes, and drew a red line at any privatisation. He dismissed Democrats' ideas as a step toward private pensions, stating the PS would not accept them. While open to minimal agreements on issues like raising the retirement age or pension point costs, Baró rejected temporary measures offering relief for just two or three years.

Both acknowledged possible consensus on limited changes, but a broader overhaul appears remote, with no firm timeline for negotiations. Lladós described the exchange as a "mini parliamentary session," underscoring pensions as a key national economic priority alongside diversification and resilience against shocks.