Pension Spending In Spain Soars More Than 10% to €12 Billion In March
Spain News
Published: 30 March 2023 17:33 CET
Updated: 24 August 2023 17:33 CET
Spain’s Social Security has set a new record with an allocation of €11,945.6 million in March for the payment of contributory pensions, marking a 10.8% increase compared to the same month in 2022.
The Ministry of Inclusion, Social Security and Migration reported the rise after the recent 8.5% revaluation for this year. Despite this increase, the department led by José Luis Escrivá estimates that pension spending accounted for 11.7% of GDP in the last twelve months, the same percentage as in 2022, but lower than in 2020 due to the pandemic's impact on GDP.
The payment of contributory pensions in March was mostly dedicated to retirement pensions, which made up almost three-quarters of the total amount allocated. These payments totaled €8,696 million, marking an increase of 11.5% compared to March last year.
In addition, widowhood pensions received €1,997 million, reflecting a 9.5% increase from a year ago, and permanent disability benefits were allocated €1,058.9 million, which is 7.5% more than last year. The payment of orphan benefits reached €162.6 million, an increase of 8.7%, while benefits in favour of family members totaled €31.3 million, up by 11.4%.
In March, 10,019,006 contributory pensions were paid, which was a 0.9% increase from last year, for just over nine million pensioners. The majority of the pensions were retirement pensions, totaling more than 6.33 million. Widow's pensions amounted to 2.35 million, permanently disabled pensions totaled 945,332, and orphan pensions reached 340,760. Family members received 44,772 pensions.
The average retirement pension increased by 9.7% year-on-year in March, following an increase in pensions with the CPI applied since the beginning of the year, amounting to €1,372 per month. The average widow's pension reached €849.6 per month, up by 9.5% from last year.
The Ministry has also reported that the average resolution of files for retirement pensions and widowhood pensions was 21.15 days and 19.46 days, respectively, in 2022. By law, the maximum resolution period is 90 days for both types of pensions.
As of March 1, 452,764 pensions received the gender gap supplement, which aims to correct the difference between the average pension received by a man and a woman. The average monthly amount of this pension supplement, received by 91.9% of women, is €66. The supplement, in force since February 2021, consists of a fixed amount of €30.4 per month per child, applied from the first child to a maximum of four, and is requested at the same time as the pension.
Source
https://thecorner.eu/news-spain/spain-economy/pension-spending-soars-in-march-to-12-billion-10-as-spain-takes-on-6-billion-a-month-in-debt/105217/
https://www.eleconomista.es/economia/noticias/12205204/03/23/El-gasto-en-pensiones-se-dispara-en-marzo-a-la-cifra-record-de-11945-millones-un-108-mas.html
https://www.expansion.com/economia/2023/03/28/64229703468aeb84378b4614.html
