Thursday, 21 September 2023
BusinessPension spending reaches a new record with a monthly bill of 12,039.2...

Pension spending reaches a new record with a monthly bill of 12,039.2 million

Social Security allocated a record amount of 12,039.2 million euros in August to the payment of the ordinary monthly payroll of contributory pensions, 10.9% more than in the same month of 2022, as reported on Tuesday by the Ministry of Inclusion, Social Security and Migrations. This monthly invoice represents a new record after overcoming the barrier of 12,000 million euros in July.

The Department headed by José Luis Escrivá estimates that the pension spending stood at 11.8% of GDP in the last twelve months, a figure slightly higher than that of 2022 (11.7% of GDP), but lower than that of 2020 (12.4% of GDP), a year conditioned by the impact of the pandemic on GDP, and also to that of 2021 (12.1% of GDP).

According to forecasts by the Independent Authority for Fiscal Responsibility (AIReF) and the Government in its 2023-2026 Stability Plan, the disbursement of Social Security adding contributory and non-contributory payments will close the year at 14% of GDP, according to the public audit, or 13.4% of GDP, according to the Executive data sent to Brussels.

In August of this year, 10,069,148 contributory pensions were paid, 1.2% more than a year ago, to just over 9.11 million pensioners. After the rise in pensions with the CPI applied since the beginning of the year, the average retirement pension increased by 9.5% year-on-year in Augustup to 1,375.7 euros per month.

In addition to updating with average annual inflation, the progressive entry of higher contribution bases also influences, resulting in higher benefits. In fact, the highest average benefit is received by the cohort between 65 and 69 years of age, with 1,449 euros per month.

For her part, the system average pensionwhich includes the different types of pension (retirement, permanent disability, widowhood, orphanhood and in favor of relatives), also increased by 9.5% year-on-year, until reaching August 1 of this year at 1,195.65 euros per month. The gap with the pensioners of the special regime for self-employed workers (Reta) remains: almost two million self-employed receive a benefit of 823 euros, 32% less.

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