The average retirement pension exceeds 1,200 euros in January after the revaluation according to the CPI

The average retirement pension has exceeded 1,200 euros per month for the first time. Specifically, this January it stood at 1,245.9 euros, 5.40% more than a year earlier, after applying the revaluation of pensions according to the CPI, the Ministry of Social Security reported on Tuesday. This morning, the Government takes to the Council of Ministers the approval of this annual increase, of 2.5% in general and 3% in the case of minimum and non-contributory pensions, which was already reflected in the General State Budgets.

This is how pensions will be in 2022: the minimum retirement amount rises to 721 euros and the maximum to 2,819

This is how pensions will be in 2022: the minimum retirement amount rises to 721 euros and the maximum to 2,819

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The average retirement pension of the entire system thus exceeds the barrier of 1,200 euros, but there are important differences by scheme. The pension from the General Regime, that of all employees, was close to 1,400 euros per month: 1,396.22 euros. On the other hand, the "lowest" average pension is registered by the Self-Employed Regime, recalls Social Security, which stood at 829.56 euros per month. The Ministry directed by José Luis Escrivá is negotiating a reform of the contribution of the self-employed, so that they contribute according to their real income, since the vast majority contribute the minimum and, in the end, have lower social protection.

The average widow's pension in force in January reached 774.26 euros per month and the permanent disability pension exceeded one thousand euros per month for the first time (1,034.54). The average orphan's pension reached 436.6 euros. If we add all types of contributory pensions, the average benefit stood at 1,082.98 euros per month, 5.33% more than a year ago.

The amount of new retirement registrations, of new pensioners joining the system, rose in December 2021 (latest data available) to 1,373.80 euros per month.

Spending on pensions: 10,745 million euros

Social Security has reported that, as of January 1, the monthly payroll of contributory pensions thus reached 10,745.39 million euros. The year-on-year increase in spending is "4.8%", points out the Ministry, taking into account in 2021 pension spending adjusted to the resulting final CPI (2.5%), which is not the one applied at the beginning of the year (0.9%).

"Pension spending stood at 12% of gross domestic product (GDP) in 2021, a proportion that is maintained in the first month of 2022", indicates the Ministry of Escrivá.

In total, 9,922,051 contributory pensions were paid in January, 1.13% more than in the same month of 2021. Of these, the majority (63%) are retirement pensions, 6,226,951 pensions, followed in number by widow's pensions (2,357,080), those for permanent disability (952,322), those for orphans (341,417) and, finally, those in favor of relatives (44,281).

The general increase in pensions for 2022 is the result of the average consumer price index (CPI) between December 2020 and November 2021, of 2.5%, which also applies to Passive Class pensioners. This is the first time that the new revaluation mechanism approved in the first block of the pension reform has been applied, which repeals the IRP of the Rajoy Government, which involved annual increases of 0.25%.

In addition, the Government agreed to a greater annual increase for the lowest pensions, the minimum (and SOVI) and non-contributory pensions, which have been revalued by 3%. This reference also marks the annual increase in the minimum vital income.

"On the other hand, in the second half of January pensioners and beneficiaries of the Minimum Vital Income have received a compensatory payment for the revaluation of 2021", known as 'paguilla', indicates the Social Security. This payment compensates the final CPI of 2021, of 2.5%, which was finally higher than the annual increase agreed according to the forecast for that year, of 0.9%.

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