Wed. Feb 19th, 2020

Pension spending amounted to 9,759 million in December, new historical high | Economy



Social Security in December allocated the record figure of 9,759.8 million euros to the payment of contributory pensions, 4.7% more than in the same month of 2018, according to data published Friday by the Ministry of Labor, Migration and Social Security, which stressed that the growth of spending “has been moderating” since the beginning of the year, from around 7% in the first half of the year.

Most of the 9,759 million euros destined to pay the payroll of pensions in December went to retirement pensions, with almost 6,963 million euros (+ 4.9%), followed by widow’s pensions, to those dedicated 1,692 million euros (+ 5.05%). In December 941 million euros (+ 3.3%) were paid for permanent disability pensions, orphanage accounted for 137.9 million euros (+ 3.6%), and family pensions totaled 24 , 9 million euros (+ 5.9%).

The number of pensions advanced 1.01% in December compared to the same month of 2018, to 9,801,379 pensions, a new system record. The Ministry has stressed that this is the smallest increase in recent years. Although the annual growth rate of the number of pensions is not the highest in the historical series of the last decade, with it 47 consecutive months of growth of over 1% have already accumulated.

Of the total pensions, more than half, 6,089,294, were retirement pensions, with a rebound of 1.58% compared to December 2018, the lowest rate in two years. Meanwhile, 2,366,788 pensions were widowed (+ 0.05%), 962,035 permanent disability (+ 0.71%), 340,106 orphaned (+ 0.5%), and 14,156 in favor of family members (+ 2.07%).

Labor has insisted that the annual increase in the number of pensions is moderating. Thus, the new discharges of retirement pensions added up to November (latest available data) a total of 281,929, 8.8% less than in the same period of 2018.

Increase the average pension

The increase in pensions this year (+ 1.6% in general) has also pushed up the average amount of benefits. Thus, the average retirement pension stood at 1,143.55 euros per month at the beginning of this month, 3.3% more than in the same month of 2018. As for the new discharges, the average retirement pension (October) is of 1,291.91 euros in the whole system and 1,406.7 euros in the General Scheme.

On the other hand, the average pension of the system, which includes the different types of pension (retirement, permanent disability, widowhood, orphanhood and in favor of family members) in December stood at 995.76 euros per month, which represents an annual increase of 3 , 6%.

The average widow’s pension, meanwhile, has registered the largest year-on-year increase in relative values, 5%, to 714.9 euros per month, after the increase in the regulatory base on which this benefit is calculated from 56% at 60%

In addition, the permanent disability pension in December reached an average amount of 978.4 euros per month, with a year-on-year increase of 2.5%. On the other hand, the average orphan’s pension amounted to 405.54 euros per month, 3.1% more than in December 2018, while that of family members stood at 579.25 euros per month, with a rebound of 3.7%

Work has highlighted that the number of affiliates for each pensioner stood in November (last data published) at an average ratio of 2.33.

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