In several countries, pensions are neither taxable nor contributory. In some countries, the pension is an income on which you have to pay taxes. In addition, there are countries where a health insurance contribution is also charged on the pension. In order for the comparison to be fair, the net amounts were taken into account, that is, the money that the pensioner actually receives in his or her bank account or in cash.
Of the 44 countries considered in the study, Norwegians receive the highest pensions: $2,017 a month according to the latest official statistics. Switzerland ($1,913) and the US ($1,663) are also distinguished by high state pensions.
In Argentina, according to the latest data from the National Social Security Administration, more than 4 million people receive a retirement pension, and the average retirement is 48,286.86 net pesos or US$453 (25th place in the ranking).
Retirees in Albania ($144), Moldova ($143), and Ukraine ($123) receive very low retirement pensions.
One clarification made by analysts is that the amounts shown represent only state pensions. The use of additional forms of savings, such as retirement insurance, is not mandatory. As a general rule, the money from these insurances can be withdrawn by a pensioner in a single payment. Therefore, it is not possible to include these measures in this study. Furthermore, in the case of Argentina, we also do not consider independent systems not included in SIPA.
Basic food basket for retirees
For this study, analysts compiled a sample food basket and compared the prices of these products with the average retirement. The basket is made up of 10 product groups: bread, milk, yoghurt, eggs, rice, cheese, meat, fish, fruit and vegetables. This list is an average of the WHO and local health ministry recommendations for nutrition in older people. Although the list is very limited, these products, in the quantities given, are sufficient to cover the minimum monthly nutrient requirements of an average older person.
- Bread (12 bars of 500 g) – $1310
- Rice (3kg) – $290
- Eggs (20 units) – $250
- Milk (12 l) – $1010
- Yogurt (5 l) – $2600
- Cheese (1.5kg) – $1000
- Chicken and beef (3 kg) – $1130
- Fish (3kg) – $2550
- Fruit (9kg) – $1200
- Vegetables (15 kg) – $1530
The value of the basket of basic food products in Argentina in March 2022 is AR$12,870. Thus, the basic foods that only ensure survival are equivalent to 26.7% of the average Argentine pension.
Where is it possible to live at the time of retirement?
Although food preferences and the perception of a comfortable life vary from region to region and even depend on the individual, we decided to compare the prices of staple foods with the average pensions in different countries.
The best relationship between food prices and pensions was recorded in Norway, Austria and France. In these countries, the basic basket of products represents 13.4%, 13.7% and 14.3% of the average pension, respectively.
In this ranking, Argentina occupies position 23 of 44 countries with a result of 26.7%, ahead of countries such as Brazil (41.4% and position 34), Chile (43.2% and position 35) and Peru (65.5%). and position 41).
Among the countries included in this study, the situation of retirees in Albania, Belarus and Ukraine is the worst. The mere basket of basic products consumes 72.8%, 76.7% and 84.9% of their retirement, respectively.
Source: Ambito
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