The average of the new pension registrations stands at 1,396.1 euros per month, above the 1,320 euros of the most common salary in Spain in 14 payments
It has become a habit every month. In August, Social Security awarded a new record amount to the payment of contributory pensions. A total of 10,856.9 million euros, which represents an increase of 4.6% year-on-year. A figure in which new registrations for retirement continue to weigh heavily, with the average amount in the system rising to 1,396.1 euros per month in July.
The data once again puts the generation gap between the new retirees and the employees on the table. And it is that the most common salary in Spain in 2020 was 18,480 euros, the latest exercise published by the National Institute of Statistics (INE). That is 1,320 euros per month (slightly below the new pension benefits) if it is divided into 14 benefits.
In total, Social Security paid 9,948,815 contributory pensions, 0.9% more than in the same month of 2021, of which 6.25 million are pensions and 2.35 million are widows. Three quarters of the wage bill is mainly intended for old age pensions, with 7,860 million euros. For those on widowhood 1,832.7 million euros has gone.
On the other hand, pensions for permanent invalidity amounted to €985.3 million, while those for orphans amounted to €150 million and benefits for family members a further €28.4 million.
In total, pension expenditure stands at 11.8% of GDP, below the 12.1% of the 2021 fiscal year and the 12.4% of 2020. But all indications are that the figure will rise again next year, given the expected slowdown in the pace of economic growth and the increased costs resulting from the revaluation of benefits with the CPI.
The branch minister, José Luis Escrivá, has guaranteed in his latest public interventions that no matter where inflation is, pensions will be revalued in accordance with the provisions of the law. Estimates from the Independent Authority for Fiscal Responsibility (AIREF) suggest that with an average inflation forecast of 7.8% in 2023, these expenditures will skyrocket by 10.1%, representing an additional cost of €15,000 million for the state.
According to Social Security data, the system’s average pension (which includes all types of benefits) is €1,091 per month in August. An amount that has increased by 5.3% in the past year. The average old age pension is 1,256 euros. The average widow’s pension in effect in August is EUR 779.6 per month.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
