Post by account_disabled on Mar 4, 2024 1:52:48 GMT -5
The other day one of my clients asked me if it would be convenient to increase the social security contribution since he was contributing at the minimum and this worried him for his retirement.
Let's see, it's not a question that I get asked very often but I tho Chinese Overseas Asia Number Data ught the question was interesting and I told him what I was asking.
But I don't just want to talk to you about what I'm doing, but rather about how the social security model works so that you better understand my position and that perhaps it will also help you to draw your own conclusions.
Before getting into it, I would like to tell you that I am not an economist and that all these reflections are personal and based on my own criteria , knowledge and experience.
Article index
The business model of the Spanish Social Security
Do you remember the question my client asked me and why?
Three possible scenarios
The business model of the Spanish Social Security
Let's go back.
I don't know if you've ever heard of Ponzi schemes or also called pyramid scams.
I'll explain just in case you haven't heard of them.
They are a type of scam that is based on the fact that there must always be an entry of money into the circuit. The moment the money stops coming in, the cataclysm occurs.
Well, and you may wonder what this has to do with the self-employment fee that my client pays, that I pay, that perhaps you pay or even the social security part that your company pays for you. Because this not only affects the self-employed, but it affects all workers.
Well, a lot.
The Social Security system in Spain has a system of operation similar to the Ponzi scheme. Be careful, I am not saying that it is a scam, but that it has a very similar operating system and can significantly affect your retirement pension.
You do not believe me?
Keep reading.
The first thing we have to be clear about is that the concept of Social Security is very broad and covers many situations.
Let's see, it's not a question that I get asked very often but I tho Chinese Overseas Asia Number Data ught the question was interesting and I told him what I was asking.
But I don't just want to talk to you about what I'm doing, but rather about how the social security model works so that you better understand my position and that perhaps it will also help you to draw your own conclusions.
Before getting into it, I would like to tell you that I am not an economist and that all these reflections are personal and based on my own criteria , knowledge and experience.
Article index
The business model of the Spanish Social Security
Do you remember the question my client asked me and why?
Three possible scenarios
The business model of the Spanish Social Security
Let's go back.
I don't know if you've ever heard of Ponzi schemes or also called pyramid scams.
I'll explain just in case you haven't heard of them.
They are a type of scam that is based on the fact that there must always be an entry of money into the circuit. The moment the money stops coming in, the cataclysm occurs.
Well, and you may wonder what this has to do with the self-employment fee that my client pays, that I pay, that perhaps you pay or even the social security part that your company pays for you. Because this not only affects the self-employed, but it affects all workers.
Well, a lot.
The Social Security system in Spain has a system of operation similar to the Ponzi scheme. Be careful, I am not saying that it is a scam, but that it has a very similar operating system and can significantly affect your retirement pension.
You do not believe me?
Keep reading.
The first thing we have to be clear about is that the concept of Social Security is very broad and covers many situations.