Pension spending will probably reach the end of the year with a minimal drop, in real terms, or even a slight rise, in relation to the same period in 2023, based on how December inflation evolves.
The estimate corresponds to Argentine Institute of Fiscal Analysis (IARAF) and it takes into account the bonuses for minimum assets that have been given throughout the year to compensate for the drop in purchasing power.
It is to be remembered that The assets at the base of the pyramid had aid of $55,000 each month in January and February and then since March $70,000 has been granted. If the Government had updated that bond at the rate of inflation, it would now have to be $98,000.
According to IARAF, the intensity of the “chainsaw” on pension spending has decreased since the year began.
“The largest real year-on-year falls occurred during the first five months of the year. From a real interannual decrease of 32% in the month of January, it went to a real interannual decrease of 1.1% in November,” the report states.
He himself clarifies that “After several months with double-digit falls, in November spending on retirement and contributory pensions with bonuses included reduced its real year-on-year decline to 1.1%.”
Therefore, he estimates that “Although it is complex to make a projection, it is possible to affirm that perhaps the month of December 2024 will register a slight real year-on-year increase.”
How much will a retiree earn from the minimum in January
A retiree who receives minimum plus a bonus you will receive $335,907 in hand. That amount It exceeds by 17% in real terms what it received in March. But it would have to be $28,000 higher. Since the Government keeps the bond fixed, the long-term effect is liquefaction.
It is worth remembering that after the 2.4% rise in inflation in November, All salaries will be adjusted to that mark in December and payment is in January. It’s two months late, which in a context of falling prices benefits retirees. The minimum without bonus will be $265,907.
What will ANSES benefits be like in January?
- Minimum retirement: $265,907 + $70,000 bonus = $335,907
- Maximum retirement: $1,789,302.45
- Universal Benefit for the Elderly (PUAM): $212,725.60 + $70,000 bonus = $282,725.60
- Non-Contributory Pensions (PNC) for Disability or Old Age: $186,134.90 + bonus of $70,000 = $256,134.90
The IARAF maintains that the national public spending in retirements and contributory pensions “It constitutes the main expense of the National Public Sector.”
“In effect, its evolution largely defines the possible evolution of total spending. During this year 2024, the fall in the purchasing power of pensions was the opposite of the real fall in public spending.”.
Source: Ambito
