Spain Breaks Records With €12 Billion Pensions Expenditure In September
Spain News
Published: 27 September 2023 14:52 CET
Spain’s pension expenditure soared to an astounding €12,051 million in the month of September, marking an impressive 10.9% increase and establishing a new record high.
This extraordinary rise can be attributed to the comprehensive pension reform implemented, which led to an 8.5% increase in pensions by 2023, aligning with the average inflation rate between December 2021 and November 2022. As a consequence of the consistent upsurge in pensions, in accordance with the Consumer Price Index (CPI) since the year's commencement, the average monthly retirement pension experienced an exceptional year-on-year growth of 9.5%, reaching €1,376.40.
September of this year saw the distribution of 10,073,434 contributory pensions in Spain, reflecting a 1.2% increase compared to the previous year, serving over 9.12 million pensioners. Among these pensions, over 6.38 million were retirement pensions, 2.35 million were widow's pensions, 945,539 were permanent disability pensions, 342,294 were orphan's pensions, and 45,328 were family pensions. Of the total pensioner population of 9,121,410 as of September 1st this year, 4.6 million were men, while 4.5 million were women, resulting in an average of 1.1 pensions per pensioner.
The primary form of pension received was the retirement pension, with 60.2% being men, totaling 6.3 million beneficiaries. Widowhood pensions were the main source of support for 1.5 million individuals, of which 95.9% were women. Permanent disability pensions played a pivotal role for 940,705 pensioners, while orphan's pensions sustained 324,627 people, and family allowances were essential for 44,681 pensioners.
In August of this year, the average amount for new retirement pensions was €1,439.80 per month, according to the latest available data.
The Department, led by José Luis Escrivá, estimates that pension expenditure constituted 11.7% of GDP over the past twelve months, mirroring the same figure as in 2022 (11.7% of GDP). However, this percentage was lower than that in 2020 (12.4% of GDP), a year deeply affected by the pandemic's impact on GDP, and also lower than in 2021 (12.1% of GDP).
Of the €12,051.4 million disbursed in September for contributory pensions, a significant 73% was dedicated to retirement pensions, amounting to €8,793 million, reflecting an 11.7% year-on-year increase.
Widowhood pensions received an allocation of nearly €2,006 million, indicating a substantial 9.4% growth compared to the previous year, while permanent disability benefits reached €1,057 million, marking a 7.5% increase.
The disbursement for orphan's benefits totaled €163.9 million, demonstrating a robust 8.9% uptick, while benefits provided to family members amounted to €31.9 million, showcasing a commendable 12% increase.
Source
https://thecorner.eu/news-spain/spain-pension-expenditure-reaches-a-record-12051-million-in-september-up-10-9/111141/
https://www.europapress.es/economia/laboral-00346/noticia-gasto-pensiones-alcanza-cifra-record-12051-millones-septiembre-109-mas-20230926091024.html
