During the month of March 2022, the minimum amount reached its lowest level in the last 15 years and, although it managed to recover in June due to the update of retirement mobility, it was barely able to exceed the average of the last 12 months. This is stated in a study presented by the Economic Research Institute of the Córdoba Stock Exchange.
In this way, the work explains that the assumption of the new Minister of Economy, Sergio Massa, brought with it the announcement of various economic measures. Among them, the payment of a bonus for Anses retirees was confirmed, which will be added to the increase in retirement assets in accordance with the provisions of the Retirement Mobility Law.
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Weeks ago, President Alberto Fernández, by decree, extended until December 31 the pension moratorium that expired on Saturday the 23rd. The extension will be without effect if the new one that is being discussed in Congress comes into effect first. The decision comes in a context in which, as of March this year (latest official data available), six out of ten retirees accessed their benefit through a moratorium.
Since 2002, the total number of beneficiaries of retirement and pensions from SIPA (Integrated Argentine Social Security System) has grown 88% and is 5.7 million. The moratoriums allowed many workers, formal and informal, who do not comply with the necessary contributions, to access the benefits of the contributory system.
The benefit they access, in general, corresponds to the minimum pension of the contributory system, which today is $37,525 per month. According to data from Anses, the main beneficiaries who receive this credit represent approximately half of the total. If the universe of liabilities that receive up to the equivalent of two minimum assets is considered, the volume amounts to 63% of the total. The analysis of the evolution of the minimum retirement salary was made based on Anses data updated at 2022 prices on the Indec CPI.
Last May, the minimum amount reached its lowest level in the last 15 years and, although it managed to recover in June (due to the update of retirement mobility), it was barely able to exceed the average of the last 12 months.
Expenditure on pensions and contributory pensions shows a high level
Measured as a percentage of GDP, spending on pensions and contributory pensions is at the highest levels since 2002. The data is not minor if one considers that the need for a pension reform was included in the agreement signed with the IMF. The review of the fiscal program foresees a tightening of the adjustment in this second half of the year.
“Retirement and pension spending as a percentage of GDP is expected to fall, consistent with the existing indexation formula, linked to past growth in wages and Social Security contributions. That said, discretionary pension adjustments should also be avoided” the document points out. It refers to initiativesexpensive” (sic) like the one promoted by the Front of All in the Senate.
The increase in public spending on pensions and contributory pensions goes hand in hand with the increase in the mass of beneficiaries rather than with the amount of assets. Although in the last five years the total number of SIPA beneficiaries remained relatively constant, the jump in spending was marked in the periods beginning in 2006 and 2014, years in which moratoriums were sanctioned that added more people.
In addition, the elimination of the capitalization regime in 2008 to make way for the current pay-as-you-go regime contributed to the marked increase in public spending after that date.
From the observation of annual retirement registrations, it turns out that, in 2014, seven out of 10 retirees entered the system through a moratorium. The figure rose in 2015, when 87% of discharges originated in this way. The trend remained to such an extent that this path always explains more than half of the new profits.
Junior Researcher of the Economic Research Institute of the Córdoba Stock Exchange