Thu. Jul 18th, 2019

The average pension already exceeds 1,000 euros in these 12 provinces | Economy

The average pension already exceeds 1,000 euros in these 12 provinces | Economy

The average pension in Spain grew by 5.7% in February. It reached 985.16 euros per month, according to data from Ministry of Labor. But this media obviously hides many disparities. One of them is territorial. There are already 12 provinces in which this average pension exceeds 1,000 euros per month: Álava, Guipúzcoa, Bizkaia, Asturias, Madrid, Navarra, Valladolid, Zaragoza, Barcelona, ​​Burgos, Cantabria and Guadalajara. Three, however, does not even reach 800 euros: Ourense, Lugo and Almeria. Browse the map to see the differences by province:

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The pension system in Spain is contributory, this means that the benefit that is perceived is related to what was previously quoted. Hence, it is the communities with the highest salaries and least unemployment that have the highest pensions. However, there are also other correction elements that influence. For example, the effects of industrial reconversions and generous early retirements that pull up the pension are also noted.

This is even more evident in retirement pensions, where the link with what is quoted during working life is much narrower, since the average of the whole system also includes the benefits of widowhood, orphanhood or family support. In this case, the average pension in Spain is higher than in the whole system, reaches 1,131.86 euros. In this case, there are 37 provinces that exceed 1000 euros per month and only one, Ourense, which is below the 788.35 euros.

The fact that retirement pensions are higher than the others (permanent disability, orphanhood, widowhood and favor of family members) is due to the fact that they are much more linked to the salaries received by the pensioner and, in addition, the percentages of the bases Regulatory factors that are taken to calculate the final benefit are higher. The regulatory base is a reference that is taken based on the contributions of the worker and serves as a reference to know the initial benefit of the pensioner at the time of accessing it.

The evolution of the average pension is one of the elements that explain why in February total spending on pensions rose by 7.1% over the previous year, to 9,563.13 million. As happened in January, this is the largest increase since 2008. This dynamic will be repeated throughout the year, as the decision to raise pensions with the evolution of prices, since mid-2018 and in 2019, has caused this jump.

The other element that influences the increase in the aggregate expenditure of Social Security, together with the average benefit and the annual update, is the number of pensions. In February, 9.7 million were paid, 1.4% more than the previous month.


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