When we talk about pensions, healthcare or social assistance, we tend to ask ourselves how much they cost. But we rarely ask the opposite question: how much would it cost the economy not to have this protection?
In Andorra, public spending on social protection reached 375.5 million euros in 2025, 9.2% more than the previous year. More than half goes to the elderly. These are important figures, but you need to look beyond the budget and ask yourself what they contribute to the economy.
Let’s imagine a family that temporarily loses income due to an illness. Without coverage, you may have to cut back on consumption, deplete savings, or go into debt. And the consequences do not stop at home: shops and services also notice them. Social protection helps to distribute risks that are difficult to assume and to cushion the impact of adverse situations on economic activity.
Social protection does not only have a cost: it avoids financial risks
This is a value that does not always appear when we only count the expenditure. A pension provides income at one stage of life; a benefit can help overcome a hardship, and access to health care protects health and the ability to participate in society. It also contributes to collective stability.
However, recognizing its benefits does not mean ignoring its cost. Living longer, a social achievement that should be celebrated, transforms protection needs, but also economic opportunities. A longer-lived society needs to adapt healthcare and care to dependency, but also to favor the autonomy and participation of older people. The challenge is to guarantee the sustainability of the system without confusing aging with dependency.
Perhaps the debate is not just how much social spending grows, but what risks it avoids, what well-being it generates and how we can preserve this value. Because the strength of an economy is not measured only by the wealth it generates, but also by the ability to protect it when it is most needed.
