Only a third of the total cost of raising pensions with the CPI will fall on the lowest

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

Contributory

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

-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

, according to the Bank of Spain, of which only

will be used

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

which is currently set at

per year in fourteen payments,

According to data from Social Security,

of the

in the country

;

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);

and

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

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

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,

, went so far as to recommend that "the

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

The Social Security stipulates each year a

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

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

In the case of retirement, for example,

this year for those over 65 years of age stands at

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

researcher

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

would be around

, more or less

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

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

and raising

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

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

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

by 8.5% will have an

euros.

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

, of which

will be used to revalue

also

Deficit of 25,000 million

The most common pension amount

in Spain is between

, since 1.11 million people are in that range.

They are followed by the range of those who earn between

, which are 733,506;

and the group of those who receive between

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

due to the effect of the

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

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

, who estimates

the total increase in pension spending for next year at

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

forecast for 2023 is

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

that are part of the

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

, equivalent to

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-

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