The new pensioners register with an average of 1,760 euros per month for fourteen benefits and almost 440,000 receive the maximum pension of 3,059 euros
Paying pensions already has a monthly cost of almost 12,000 million euros, 10.8% more than a year ago, mainly due to the revaluation with the CPI of 8.5% approved for this year, according to data published by the Ministry of Inclusion, Social Security and Migrations. With this record amount of 11,922 million euros, more than ten million pensions were paid out to more than nine million people in February. The main pension is the retirement pension for 6.2 million people, 60.6% of whom are men. The widow’s pension is received by 1.6 million people, 95.9% of whom are women.
After the increase with the CPI, the average old-age pension amounted to EUR 1,371, 9.8% more than in February last year, while the average pension for the scheme as a whole (including widowhood, orphans, permanent disability and favor of relatives) stood at EUR 1,191 per month, even with the same increase. The statistical average, like all, includes very different pensions: there are 443,521 pensioners who receive the maximum benefit of 3,059 euros per month and 4.3 million who earn less than the minimum wage (1,080 euros per month); the rest (4.26 million) is between the minimum wage and the maximum pension.
Pension expenditures are also rising because those who retire tend to have higher pensions (because their contributions have been higher) than those who leave the system upon death. In fact, the new pensioners in the general regime have done so with an average pension of 1,764 euros per month in January of this year. The mean age at discharge is 62.4 years, while the mean age at which discharge is caused is 80.5 years. This means that the benefit is collected around the age of 18. Moreover, taking into account that the substitution coefficient in Spain (the percentage that the pension represents in relation to the last salary) is around 70% and is among the highest in Europe, that according to the law pensions will continue to increase with inflation and that With the “baby boom” generation retiring, spending tensions in the system are becoming increasingly relevant. The amount of the pension benefit depends on the premiums paid and the premium years. The reform of the system has or will eventually have such consequences on both variables that the premiums and the premium period over which the pension is calculated will increase.
However, economic growth is mitigating these pressures: pension expenditure represents 11.7% of GDP over the past twelve months, the same rate as in 2022, but lower than in 2020 (12.4% of GDP), and compared to 2021 ( 12.1% of GDP). ).
THE AVERAGE OLD-OLD PENSION IS MORE THAN EUR 1,370 PER MONTH
The average retirement pension of the system is 1,370.8 euros. According to the schemes, the average old-age pension of the general scheme is 1,530 euros per month, while the lowest is recorded by the self-employed scheme, which is 912.9 euros/month. In coal mining, the average monthly retirement is 2,670 euros and in the marine regime, 1,520.8 euros. The average number of new retirement registrations in the system increased in the month of January 2023 (latest data) to 1,639.6 euros per month. The average widow’s pension for his part is 849 euros per month.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
