An analysis revealed How much will be the possible loss of purchasing power of retirees during the first 5 months of the year Taking into account that the government has just formalized through resolution 38/2024 the increase in retirements for the March-May period.
Specifically, an increase of 27.2% was established for the March-May period to be applied to February’s assets. The minimum retirement will thus go from $105,713 to $134,446. An analysis by Nadin Argañaraz calculated how much the bonus should be to prevent assets from losing purchasing power
This calculation assumed a inflation of 16% in February, 15% in March, 13% in April and 10% in May. “Given the nominal increase and the expected inflation, March salaries, even increased, would have a loss of purchasing power of around 44.5% compared to the same month in 2023,” he highlighted.
In turn, it reported that the first quarter’s assets, in turn, would have a loss of purchasing power of around 43.4% and that The joint assets of the first 5 months would have a loss of purchasing power of 44.8%.
In this regard, he added: “If the government wants retirees to have pensions in 2024 with the same purchasing power as in 2023, “has as its instrument the compensatory bonus, which has been given for a few years”.
The economist revealed that a bonus of $170,000 in each of the three months would only compensate for the loss in the month of March and would leave a loss of purchasing power in the first quarter of 17.7% and a loss for the first 5 months of 12.7%, compared to the same period in 2023.
“That is to say that with a bond of this value, retirees would complete 5 months of 2024 with loss of purchasing power. In order not to have loss of purchasing power with a bond of $170,000, inflation should be 3% monthly average in the March-May period,” he added.
That is, Even giving a bonus of $170,000 in March, April and May, there should be a sharp drop in inflation to avoid actual loss of income during the first 5 months.
Continuing with the base inflation forecast in this analysis, It is essential to calculate what bonus value would allow retirees with the minimum to finish the first 5 months of the year with the same purchasing power as in the same period of 2023. In this regard, Argañaraz said that The answer is a bonus of $236,000 to be granted in March, April and May.
Only with this bonus, given the expected inflation, retirees would reach the month of May with a purchasing power for the period equal to that they had during the first 5 months of 2023, he explained.
Source: Ambito
