The Minister of Economy, Sergio Massa, and the head of the ANSeS, Fernanda Raverta, announced this Friday the fourth mobility increase of the year for retirement, pensions and allowances and a reinforcement of $15,000 for retirees who collect the floor.
Therefore, now
the minimum retirement becomes $73,665
.
"It is appropriate to apply the increase for mobility for retirees, pensioners and beneficiaries of family allowances and other benefits for almost 17 million people who are tied to the retirement mobility formula," Massa remarked.
"We have been following a path of recovery that we want to consolidate, we aspire to have 11 recovery points by the month of March," added the Minister of Economy.
Referring to the minimum retirement, Massa highlighted that "
from March to March it has an impact of more than 125% regarding the value of retirement and pensions
. And in addition, for this quarter there is an additional effort from the National Treasury of more than $200 billion in a reinforcement bonus that seeks to accompany the retirement formula that improves smaller-scale retirements.
In addition to the 17.04% increase given by the formula, Raverta was in charge of giving the details of the bonus: "There will be a reinforcement for retirees of the minimum of $15,000 for the next three months,
$15,000 per month until the next mobility
".
"This bonus will also incorporate those retirees who have up to two minimum pensions, in a decreasing manner.
Those who have up to two minimum pensions will have a reinforcement of $5,000
," Raverta remarked and assured that he was referring to 6,100,000 retirees,
84% of the retirees from Argentina
.
Fernanda Raverta, head of the ANSeS.
The impact of inflation on retirement
Without the bonuses, the mobility formula in 2022 yielded 72.5% versus annual inflation of 94.8%.
A loss of 11.5%.
With a rise of 17% in March, in 12 months, the increase would rise to 79.7% and we will have to wait for the inflation data for January-March to calculate the level of the year-on-year loss.
The minimum retirement today is $50,124
(gross) plus $10,000 bonus.
In total $60,124.
With a mobility of 17%, the minimum retirement would go to $58,645.
Thus, without a bonus, the retiree or pensioner with minimum salaries would receive nominally less than in previous months, with a strong additional deterioration in relation to inflation.
The mobility formula – which combines an increase in wages and an increase in tax collection that goes to Social Security, per beneficiary – does not have a guarantee clause or automatic compensation against inflation.
And the bonuses are only received by retirees and pensioners with lower salaries, flattening the system's income pyramid.
In addition, up to now the bonds have not been integrated as they have compensated a sector of retirees for part of the price increase in the month or months in which they are collected.
But the following month or months the retiree's total income returns to the pre-bonus level and new bonuses are required to be awarded, which thus become more frequent.
On the other hand, the value of bonds is discretionary, does not respond to any automatic formula and is not taken into account for future increases in assets.
Thus, increases are awarded on a lower basis and the retirement loss continues and deepens "for life."
Meanwhile, those who do not collect the bonus - more than 2 million retirees and pensioners - and the rest of the beneficiaries of social benefits do not have any compensation and absorb, with a drop in real terms of their assets, the complete loss due to the inflation.
DB
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