October 25, 2020

Pension spending remains stable as pensioners rebound



The payroll of Social Security contributory pensions paid on June 1 remained practically stable compared to May, with an increase of just 10,000 euros, while the number of paid incomes grew by 603, the first increase after three months of decline because of the pandemic.

According to data published this Tuesday by the Ministry of Social Security, the system had 9,754,740 contributory pensions at the beginning of this month, 603 more benefits than in May, which involved an expense of 9,862.35 million euros ( 0.1% more), to which another 9,586.31 million corresponding to extraordinary pay are added.

The confinement and closing of Social Security offices affected the number of registrations during May (40,569), which grew 30% compared to April, although it decreased 23.4% compared to last year, due to the lower number of requests from all the benefit classes except in widowhood, which increased by 10% compared to a year ago.

Social Security also adds that during May there were some 40,000 pension losses (42% less than in April), according to calculations based on data provided by Social Security, reflecting the effect that the death by COVID- 19 had, especially, on the older group.

In the first five months of the year, 198,465 new pensions were registered, representing a decrease of 22.4% compared to the same period last year, while 245,694 pensions were canceled, 16.2% more than past year.

Of the total expenditure on pensions paid on June 1, more than two thirds of the payroll went to the payment of retirement pensions, the amount of which amounted to 7,057.66 million, an amount that has grown by 2.84% in recent years. twelve months.

Of the total contributory pensions, 6,074,345 were for retirement, 2,346,038 corresponded to widowhood benefits; 951,530, to permanent disability; 339,906, to orphanhood, and 42,921, in favor of relatives.

The average pension of the system reached 1,011.03 euros per month, which meant an interannual increase of 2.03%, while the average retirement pension amounted to 1,161.88 euros, 2.1% more than last year.

Pensions corresponding to new retirement additions were 1,433.92 euros per month in May, above the system average and 10.6% higher than the amount of new pensions in 2019.

The number of pensions of the passive classes in force in the month of May was 634,475, which has placed the payroll at 1,148.88 million euros.

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