The Bank of Spain requires the Government to "distribute" the "loss of well-being" also among retirees
Public
pensions
will rise
8.47% in 2023
, according to what was revealed this Tuesday after the National Institute of Statistics (INE) announced that
inflation
stood at 6.8% in November, slowing down again compared to to the data for October, which was 7.3%.
This assumes that the Government already knows - in the absence of confirmation of the final CPI by the INE in the middle of the month - the
twelve interannual inflation rates
(from December 2021 to November 2022, both included) that it has to use to calculate the revaluation of public pensions for next year, according to Law 21/2021, of December 28.
"Social Security pensions, in their contributory modality, including the amount of the minimum pension,
will be revalued at the beginning of each year
in the percentage equivalent to the average value of the interannual variation rates expressed as a percentage of the Price Index at Consumption of the twelve months prior to December of the previous year", includes that standard.
This
revaluation of contributory pensions
from
January 1, 2023
will mean an increase in the average
retirement pension of 1,257.9 euros
-with the latest data available, from October-
to 1,364.4 euros;
that of
widowhood
will go from 780.64 euros to 846.76 euros;
that of
orphans
from 439.07 euros to 476.25 euros;
the pension in favor of relatives, from 640.70 to 694.96 euros;
and that of
permanent disability
in its contributory modality from 1,093.13 to 1,180.78 euros.
Non-contributory and minimum pensions will rise by
15%
, in line with the increase they had experienced in 2022, as the Government has agreed with Bildu in the processing of the General State Budgets.
The rise in pensions with the average CPI data known this Tuesday, in line with the recommendations of the Toledo Pact, means that Social Security will suffer a
sharp increase in public spending
next year, of around
15,200 million
euros.
For
2023
, the spending budget of this administration contemplates an expense of
190,687 million euros in pensions,
11.4% more than in 2022 or an
additional 19,547 million
in public spending.
This increase will lead the public pension item to absorb 41.8% of the national budget.
The bulk of this increase in spending will be due to the
revaluation of benefits with the CPI,
since the
Bank of Spain
calculates that for each point of increase in inflation, spending will increase by an additional
1,800 million
euros.
But to this increase in spending due to the rise with the CPI, we must add an increase in spending due to the fact that there
are more pensioners
(due to the demographic change itself and the beginning of the retirement of the
babyboom
generation ) and, also , due to the fact that
new retirement registrations charge higher amounts
on average each year.
To prepare its
Budgets
, the Executive had to start from an estimate of how much pensions would rise in 2023 and for this it proposed that the indicator used would be
8.5%,
in line with what was confirmed this Tuesday.
Prices go up less and less.
The fact that inflation stood at
6.8% year-on-year in November
confirms the downward trend of this indicator, which means that prices continue to rise strongly (they were 6.8% higher in November than in November 2021 ) but each time at a slower rate (in
July
the interannual rate reached
10.8%
).
According to the criteria of The Trust Project
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