• Escrivá proposes extending the calculation period of the public pension from 25 to 30 years and choosing the best 28



-those granted to those people who have contributed a minimum number of years to Social Security- will rise

by 8.46% in 2023

-if the INE confirms in the middle of the month that the CPI in November stood at the 6.8%, as anticipated this Tuesday-, which will fatten the public spending of the system by an

additional 15,000 million euros

, according to the Bank of Spain, of which only

a third

will be used

to raise the lowest pensions.

This increase in pensions in an inflationary environment -precisely the revaluation of 8.46% comes from the average of the twelve interannual inflation rates that go from December 2021 to November 2022- will be essential to help those who receive

pensions very low,

equivalent to or less than the Minimum Interprofessional Salary (SMI),

which is currently set at

14,000 euros

per year in fourteen payments,

1,000 euros gross per month.

According to data from Social Security,


of the

9.02 million pensioners

in the country

receive the SMI or less


42.4% receive a pension that is between the SMI and the maximum pension, that is, between 14,000 euros per year and 39,468 euros per year (or between 1,000 and 2,820 euros per month);


5.2% collect the maximum pension or more.

The Government, in its own Law 21/2021, stipulated that all pensions would rise annually according to the CPI, but the increase in inflation this year -which stands at 8.6% on average so far this year- has led many national and international organizations to

recommend that fiscal policy be temporary and focused

on the groups that need the most help.

Among other things, so that it is not contradictory to the restrictive monetary policy of the central banks.

In the case of pensions, the

Bank of Spain

recommended to the Executive that only the lowest rise according to the CPI, while the rest could remain unchanged or with a lower rise than inflation, as has happened with the salaries of workers.

In fact, its governor,

Pablo Hernández de Cos

, went so far as to recommend that "the

minimum pensions

be indicated (to the CPI) but perhaps not the rest".

The Social Security stipulates each year a

minimum threshold

that each type of pension in Spain must reach and, for those who do not reach it, grants a

minimum supplement to

guarantee that all people are above that level that would separate them from the poverty.

In the case of retirement, for example,

the minimum pension

this year for those over 65 years of age stands at

10,103.80 euros if they do not have a spouse;

at 12,467 euros if they have a dependent spouse, and at 9,590 if they have a spouse but not dependent.

According to the Bank of Spain, only these very low pensions should be revalued with the CPI.

Miguel Ángel García, a



who participated in the drafting of the Toledo Pact recommendations between 1995 and 2013 and who was part of the Group of Experts on the Sustainability Factor approved by the Government of Mariano Rajoy in 2013, has calculated that

the The cost of raising pensions equal to or less than the SMI with the CPI

would be around

4,500 million euros

, more or less

a third

of the total cost, with which the State could save around 10,000 million if it only chose to raise pension benefits. this group.

His personal proposal, however, is in line with that of the Bank of Spain, since he would bet on

raising only the minimum pensions with the CPI

and applying a lower revaluation to the rest: "My personal option would be to maintain power for all contributory pensions minimum pensions, raising them by 8.5%, with a cost of around

3,200 million euros,

and raising

the rest by 2.5%,

the same percentage of public employees, which would have a cost of in around

3,400 million euros

This option would maintain the contributory nature of the pension system and would imply

savings of approximately 8,000 million euros

in 2023 (which would not increase exponentially in subsequent years), compared to the 15,000 million of the chosen option," he explained to EL MUNDO.

According to his calculations, raising the pension of the

463,657 beneficiaries of the maximum pension

by 8.5% will have an

extra cost of 1,800 million


If a revaluation of 2.5% were applied to these pensioners, the cost would drop to 520 million.

Enrique Devesa

, actuary and researcher at the Valencian Institute for Economic Research (IVIE) and one of the most knowledgeable about the pension system, calculates that the expense of revaluing the total pensions with the CPI will be somewhat less, an additional

13,039 million euros

, of which

3,900 million

will be used to revalue

pensions with amounts equal to or less than the SMI,


a third of the total.

Deficit of 25,000 million

The most common pension amount

in Spain is between

700 and 750 euros

, since 1.11 million people are in that range.

They are followed by the range of those who earn between

650 and 700 euros

, which are 733,506;

and the group of those who receive between

850 and 900 euros,

which has 498,240 beneficiaries.

They are the three most common sections and all three are below the Minimum Interprofessional Wage.

The increase in spending due to the revaluation of pensions will be added to that caused by "the growing trend both in the

number of pensioners

due to the effect of the

baby boom

-currently, there are 9.95 million contributory pensions- and in

the average pension

-1,257 euros in the case of retirement pensions-", explains


, who estimates

the total increase in pension spending for next year at

19,547 million euros .

According to the General State Budget, total spending on pensions will exceed 190,000 million euros and, despite the good performance of contribution income, "the

nominal deficit

forecast for 2023 is

7,199 million

euros, which is covered by a new loan from the State".

In reality, if the 7,199 million euros of nominal deficit are added to the

15,478 million

that are part of the

current transfers of the State

for benefits and contributory functions, and the 2,793 million contributions that correspond to the intergenerational equity mechanism (the MEI, whose funds will go to the Reserve Fund and represent income for the system), "a

contributory deficit of 25,470 million euros is obtained in 2023

, equivalent to

1.8% of GDP

forecast for that year, slightly higher than the 1.7 % corresponding to the liquidation of 2022, obtained by means of the same calculations", warns



This imbalance between the income and expenses of the system, even if it is covered with State loans -that is, with income from taxes-, is the reason why the Government is working on a second part of

the pension


, that guarantees the sustainability of the system, especially in a few years in which strong pressure from spending is expected due to the retirement of the large baby-

boom generation.

According to the criteria of The Trust Project

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  • Social Security

  • GDP

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