Lorraine Williamson
The Spain property pension plan idea is having a moment — again. With pension anxiety rising and housing still the country’s great obsession, economist Gonzalo Bernardos has revived a blunt message: if you can buy a home, do it. Not for lifestyle. For old age.
Bernardos, a University of Barcelona economics professor, made the argument on laSexta Xplica, warning that future state pensions are unlikely to be as generous as today. His alternative “plan” is simple: own a property, live in it, and keep a valuable asset in the background.
A pension debate that refuses to go away
Spain’s pension system is under strain from a familiar trio: an ageing population, rising costs, and the political difficulty of reform. Independent and international assessments have repeatedly flagged the long-term pressure on public finances, even as successive governments tinker with rules and contributions.
That is the backdrop to Bernardos’ claim. It lands so sharply because it speaks to a fear many people won’t admit out loud: retirement may feel less secure for today’s workers than it did for their parents.
Bernardos’ pitch: security in bricks and mortar
On television, Bernardos framed home ownership as both shelter and savings. You pay down a mortgage instead of rent. You reduce your monthly outgoings later in life. And if values rise, the property becomes a financial buffer.
It is also, knowingly, a very Spanish argument. Home ownership has long been treated as a marker of stability here — and, in many families, a form of intergenerational insurance.
The €80,000 promise — and where it holds up
Bernardos points to homes priced around €80,000, sometimes less, particularly away from the big metropolitan hotspots. In parts of inland Spain and smaller towns, those listings do exist — often older properties, sometimes needing work, and usually far from the labour markets that young buyers rely on.
That tension sits at the heart of the debate. The “cheap house” can be real. Access to it can be another matter entirely.
The market reality: prices are still running hot
Even as affordable pockets remain, Spain’s national trend has been upwards. The INE house price index showed a 12.7% year-on-year rise in Q2 2025, with second-hand homes rising even faster than new builds.
In plain terms, the ladder is pulling up. And for many would-be buyers, the barrier is not only the mortgage. It is the deposit, the fees, and the simple fact that salaries have not kept pace.
Why a home isn’t a guaranteed pension
The Spain property pension plan logic has obvious appeal, but it comes with caveats. Property is illiquid: you cannot sell a bathroom to pay a bill. Maintenance, community charges, insurance and repairs can bite hard, especially on older homes.
There is also the location question. A low-priced home in a shrinking town may not appreciate like a flat in Valencia or Málaga. If you need to sell later, demand matters as much as bricks.
Housing policy is shifting — slowly
Spain’s housing shortage has pushed governments towards supply-side promises, from social housing drives to tougher approaches on short-term rentals. In 2025, Spain set out plans to speed up industrial construction of social housing using EU funds, explicitly framing the issue as a national crunch.
These policies may shape prices and availability in the medium term. But for buyers making decisions now, the market still feels tight, competitive, and uneven by region.
What this debate means for buyers in 2026
Bernardos is right about one thing: relying on a single income stream in retirement is risky. A paid-off home can reduce pressure, and for many households, that is the biggest “return” of all.
But the safer takeaway is less slogan, more checklist. If you can buy, run the numbers honestly, factor in upkeep, and think hard about resale and services where you’ll live. A home can support retirement. It should not be your only plan.
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