For February 2023, the Minimum Retirement without bonus represented $156while with the bonus of $15,000 would be $195 (parallel dollar price), US$250 less than in 2017, the year in which the highest value of retirement in terms of the US currency was recorded.
“Retirees in our country have been losing strong purchasing power in recent years in the face of price variations in Argentine pesos and in terms of their value in dollars. Until now, retirees have been the adjustment variable in all its scales. In fact, those who have made the greatest number of contributions throughout their working life when they exceed the 2 minimum wages do not receive a bonus, which has represented a loss of purchasing power in recent years,” explained Damián Di Pace, Director of Focus Market Consulting.
In the comparative study of the collection of the minimum retirement in Latin America, Ecuador (whose economy is dollarized) is in position 1, where they receive US$450, in last place is Venezuela, where a retiree charges US$5.8 per month . Argentina is the eighth of the eleven countries analyzed considering the retirement plus bonus (USD 195), while without a bonus it is in 10th place, before Venezuela.
“The sustainability of the Argentine pension system is a great present and future concern. The lack of generation of private employment, that is, new contributors in relation to the income of a greater number of retirees and pensioners, means that the collection pyramid has to be reduced downwards by expanding the beneficiary base.While in 2016 there were 2.1 contributors to the system for every 1 that received, today it fell to 1.6 contributor for each retiree that collects when at least 3 active contributors would be needed.Argentina is among the last positions to world level regarding the sustainability of the system in the future. In turn, today the system has more retirees who receive moratorium payments without having contributed than retirees who have contributed to the system,” added the economist.
The value of the Basic Food Basket (CBA) it sets the value of the indigence line, that is, the people who have incomes below that level are people who are in conditions of indigence. since the year 2016 to 2023 the number of basic baskets that a retiree who receives the minimum could buy (no bonus) ranged from a 2.3 and 4.1in case of observing retirement plus a bonus the number of baskets that can be purchased increases to 2.9 and 4.5.
In the year 2023 the lowest levels of purchasing power are recorded, since you can access only 3.2 and 2.5 baskets with and without bonus respectively. This is mainly due to the fact that, although the minimum wages increased by 17.04% by January 2023, inflation and the increase in food rose at a faster rate than the increase in pensions.