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Spanish Seniors’ Income Exceeds European Average by 6.4%, with Greater Income Advantage Linked to Higher Education

The BBVA Foundation and the Ivie have published a new book on the situation of older adults in Spain and the impact of education on their socioeconomic and health indicators

People aged 55 and over represent 34.6% of the Spanish population, a percentage projected to rise to 43.3% in 2070. Population aging is therefore one of the greatest challenges facing today’s society, which has seen life expectancy increase by 9.6 years since the 1970s, reaching 83.2 years. The conditions in which older adults live during the final three decades of life depend on many factors, with education being one of the most important, according to the book Formación, transición digital y calidad de vida de los mayores en España (Education, Digital Transition, and Quality of Life of Older People in Spain), published by the BBVA Foundation and the Ivie.

Overall, older individuals with higher levels of education are more active in the labor market, more employable and productive, and more likely to find jobs more easily that align with their education and offer better wages. In addition, they are in better health, are more culturally and politically engaged, make better use of technology, experience less loneliness, maintain stronger social ties with friends and family, and, ultimately, feel happier. Additionally, they enjoy greater income, face less risk of poverty or social exclusion, encounter fewer economic hardships, and possess greater net wealth and economic security in the face of potential adversity.

Overall, the relative income of Spanish people over 65 (taking into account the price level of each country – euros PPS) is 6.4% higher than the median for older people in the EU. The income advantage rises significantly with education: 26% for those with secondary education and 18% for those with higher education. However, in the case of those in younger age groups, the opposite is true: the median Spanish income is 7.3% lower than that of the EU-27 average at the same level of education. The study uses the median income—defined as the central value in an ordered list of incomes for each European country—to avoid the effect of extremes. The median is preferred over the mean when measuring economic inequality, as it provides a more representative snapshot of the typical income level and is less affected by outliers.

The study, directed by Ivie researchers Lorenzo Serrano and Ángel Soler, with Ivie economists Laura Hernández, Jimena Salamanca, and Irene Zaera, also finds that older people in Spain enjoy better economic conditions than the general population. Households headed by individuals aged 65 and older have the highest net wealth, which grows steadily from €76,000 for those aged 35-44 to a peak of €226,000 for the 65-74 age group, and remains at similar levels (€221,000) for those over 75. Notably, 35% of those over 65 have incomes at least 30% above the national median. Furthermore, while 23.2% of the group of people between 18 and 64 report having difficulties making ends meet, in the case of those over 65, that percentage drops to 15.9%.

On the other hand, while the degree of inequality among the elderly is still present, it is less pronounced among younger groups. The disposable income of the wealthiest 20% of seniors  is five times that of the poorest 20%, while this ratio is 5.6 among the rest of the population.

Differences between older adults are marked by level of education

However, within the older population —defined as those aged 55 and over— there are significant differences. According to the study’s conclusions, educational level is the main factor influencing the inequality observed in living conditions among older adults. The median income of those over 65 increases significantly with education: from €16,807 PPS for those with only basic education to €23,134 PPS (37.6% increase) for those with secondary education, and €30,864 PPS (83.6% increase) for those with higher education. Net household wealth also varies according to educational levels. Taking as an example the €226,000 median wealth for the cohort of people aged 65 to 74, the indicator falls to €140,000 for that age group with only basic education, while it rises to €243,000 for those with secondary education and to €503,000 for those with higher education.

The differences are not only observed in economic conditions, as education also affects the health and emotional well-being of older people. In general, Spain is in a relatively favorable position in terms of healthy life expectancy after the age of 65 (10.5, compared to the EU average of 9.7). However, the subgroup with higher education has better health outcomes. For example, older people with higher education are 9 percentage points less likely to be overweight or obese and more likely to participate in physical activity than their peers with basic or lower education.

In addition, issues with mobility and personal care are also more prevalent among older people with lower education levels. Fifty-six percent of people aged 55 and over who have, at most, primary education report mobility problems and 25.6% have difficulties with personal care, compared to 25.6% and 6.2%, respectively, among those with higher education. Chronic illnesses are also more more common among older people with lower levels of education.

Improvements in the educational levels among older adults could significantly reduce  health issues and ease pressure on the public health system. The study estimates that by 2055, better education levels of older people could reduce the number of adults with mobility problems by  more than 1.4 million and those with personal care difficulties by more than 1.1 million, compared to a scenario with no  educational improvement.

On the other hand, older people with higher levels of education also express greater emotional well-being, which is deeply linked to stronger social ties and contact with family and friends. Just 4% of them feel socially excluded, compared to 8.8% of those with only primary education. The more educated are also more likely to maintain regular contact with friends and family and to seek help when needed. Regarding the problem of loneliness, 32.4% of older adults with basic education say they feel lonely sometimes or most of the time, while in the case of older adults with higher education, that percentage drops to 21.5%.

Finally, older people with higher levels of education experience more active aging. Older people with higher education are more likely to engage in physical activity and sports. They also participate more regularly in cultural activities and show greater social commitment through volunteering, political participation, and concern for environmental protection.

Employability

Spain’s aging population is also reshaping the labor market. Participation among older adults varies significantly by education level. The activity rates of those over 55 range from 7.5% for those who only completed primary school to 47.5% for those with higher education. Therefore, education plays a key role in extending working life. However, when compared to the EU, the participation of older Spaniards in the labor market is lower, as the overall activity rate for those over 65 in Spain is 3.7%, just over half the European average (6.6%).

In this regard, the study warns of the high number of older people who neither study nor work in Spain. The percentage of NEETs (Not in Employment, Education, or Training) among young people is often highlighted, reaching 16.1% in the 25-34 age group. However, the proportion of NEETs rises to 38.1% among people aged 55 to 64, who are below the usual retirement age, and to 90.4% in the case of older people aged 65 to 74. According to the authors This trend is partly attributed to relatively generous pensions—median pensions in Spain are about 80% of the median wage, compared to less than 60% in the EU-27—and the limited use of part-time work among older adults (11.6% in Spain vs. 23.9% in the EU).

Despite these challenges, older workers with higher education tend to fare better in the labor market. Ninety percent of older people with a university education have permanent jobs, almost 20 points more than older people with only a primary education. Furthermore, with the same level of education, the salary of older people is 11.9% higher than that of workers aged 25 to 54, and the difference rises to 25% for those with higher education degrees.

In contrast to the figures showing the general employment advantages of older people, the study also highlights the difficulties that can be encountered by people who lose their jobs in the final stages of their working lives and have to re-enter the labor market. People over 55 account for 45% of long-term unemployment cases (more than two years). Furthermore, when they do find new jobs, these are of lower quality than those of older people who have remained in their employment and also worse than those of young people who have just entered the labor market. The study also finds that companies are less interested in training their older employees, as they finance 59% of training activities for workers aged 25 to 54, but only 49.8% of those carried out by employees aged 55 to 69.

Digital Skills and Lifelong Learning

The lack of digital skills is one of the major barriers for older people. Only 18.8% of people over 55 have a basic level of digital skills and just 16.3% have an advanced level. Once again, training is a factor that reduces the gap, as in the case of older people with a university degree, these percentages rise to 26.9% and 36.7%, respectively.

In any case, part of the older population is trying to improve their digital skills through non-formal education activities, since, in 2022, people over 55 participated in more than 725,000 activities aimed at acquiring digital skills, which represents 11% of all their total training efforts.

In fact, the study highlights the growing importance of older people in terms of demand for the education system, both in non-formal and formal education. In the former, older people now account for 19.4% of all trainees, having doubled their share over the last 15 years. In the case of formal education, higher education is the area in which the greatest participation of older people is observed, with their share of enrollment in higher education rising from 0.8% in 2015 to 1.4% today, a trend that will continue to gain momentum in the future, driven by the aging of the population.

Although overall the older population is less educated than younger people, in 2022, 30.4% of people aged 55 to 69 had already completed some form of formal or non-formal education.

Women’s longer life expectancy—5.4 years longer than men on average—means that they make up the majority of the elderly population. Women account for 53.3% of people over 55 and 60% of the population aged 75 and over. Past differences in access to education have shaped their current situation and, in the workplace, the activity rate for women aged 55 to 64 is 11.9 percentage points lower than that of men. However, trends among younger generations suggest progress: while older women are currently 2 percentage points less likely than men to have completed post-compulsory education, young women today are 9.2 percentage points more likely than young men to complete higher education.

The study highlights the positive role of education in the lives of older people, but also reflects the more unfavorable situation in all areas for older people with lower levels of education. This raises the need to develop policies aimed at these groups, which requires the collective effort of public administrations, companies, educational institutions, and the third sector, as well as the elderly themselves, by adopting healthy lifestyle habits, training, and remaining socially and professionally active.