As most other European countries, Spain faces the challenge of securing old age pensions in times of a two-fold, contradictory pressure: on the one hand, fiscal austerity requires pension cutbacks, whereas at the same time, the spread of atypical employment and unemployment creates new social needs of labor market outsiders. Both sources of pressure are particularly acute in Spain given the insider-focus of its traditional pension regime and the dramatic changes in labor market prospects especially for the younger generations.