The new increase will increase the wage bill of the elderly to 1,365 euros in January, while new retirees currently stand at almost 1,530 euros
The system’s average old-age pension marks a new record, rising to $1,257.9 gross per month in October, according to data released Tuesday by the Social Security Ministry. That is almost 65 euros more than a year ago, when the wage bill of pensioners did not exceed 1,200 euros on average, an amount that exceeded at the beginning of 2022. And this amount will skyrocket further with the new rise coming next January, when it will suddenly rise 8.5%, the highest in history, in line with this year’s inflation. That means 100 euros extra per month, which means that the average payment in the new year increases to about 1,365 euros.
Much higher is the amount that new retirees who come into the system receive, who earn an average of 1,529 euros per month. In this case, however, it is not a new record, as there have been months in which the pension of this group was even well above 1,600 euros.
This sharp increase will put pressure on social security accounts, which will have to allocate almost 20,000 euros more to pay out pensions next year to more than 190,000 million. Only for the payment of non-contributory benefits for October, a record amount of 10,887 million euros was paid out, 6.2% more than in the same month of 2021.
Three quarters of the non-contributory pension salary for October has been used to pay old-age pensions; namely 72.5%, or 7,890.2 million euros. 1,836 million euros is earmarked for widow’s pensions, while the wage bill for permanent disability benefits is 982 million; those of orphans up to 149.8 million euros, and benefits in favor of family members up to 28.5 million.
It should be noted that the number of non-contributory pensions exceeds ten million, at 9,959,123, a historic maximum, 0.8% more than in the same month of 2021. 6,272,545 are retirement, 2,351. 962 for widows, 948,917 for permanent disability, 341,194 for orphans and 44,505 for relatives. The number of pensions grew by 0.79% year-on-year, below the rate of 1.1% a year earlier.
The number of retirees for its part is 9,022,989 as of October 1. Of these, 4.6 million are men and 4.4 million are women. The ratio of pensions per retiree is 1.1 benefits per person. The main pension is the old age pension for 6.2 million people and the widow’s pension for 1.6 million people. They are followed by the recipients of permanent disability (943,539), orphanage (323,925) and family favors (43,766).
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.
