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Pensions: Inflation Devoured the $55,000 Bonus

2023-12-07T11:19:15.527Z

Highlights: Pensions: Inflation Devoured the $55,000 Bonus. Even if their payment is maintained in January and February, the fall in assets would deepen. Ombudsman for the Elderly, Eugenio Semino, argues that retirement benefits should increase at the pace of this "hellish" rise in prices, while the new government is announcing and the projects can be analyzed with the pension changes, he says. It is that more catastrophic in relation to their original assets is the situation of those who did not receive bonuses, which this year had an increase of 110.9% versus an inflation of 190%.


Even if their payment is maintained in January and February, the fall in assets would deepen.


Inflation – which is projected to reach 20% this month – has already eaten up the $55,000 bonus that lower-income retirees are collecting. Compared to a year ago, the minimum credit was $50,124 plus a bonus of $10,000 (total $60,124) and this December they are collecting a minimum of $105,713 + $55,000 ($160,713). This represents an increase of 167.3%.

Meanwhile, annual inflation is expected to be around 190%. The minimum total income would be 22.7 points below the rise in prices.

If the payment of the $55,000 bonus is maintained, the total income would remain at $160,713 in both January and February, when in those 2 months inflation could accumulate 30% or more.

For this reason, the Ombudsman for the Elderly, Eugenio Semino, argues that it is not enough to maintain the payment of the bonus, but that retirement benefits – and not only those of the minimum – should increase at the pace of this "hellish" rise in prices, while the new government is announcing and the projects can be analyzed with the pension changes. especially with the mobility that is due to be implemented in March.

This means that the $55,000 bonus in January should rise to at least $65,000 and to almost $80,000 in February and apply some emergency increase for those who do not collect bonuses.

It is that more catastrophic in relation to their original assets is the situation of those who did not receive bonuses, which this year had an increase of 110.9% versus an inflation of 190%. It represents a 28% drop in just 12 months. If we add up inflation in January and February, the drop could be around 40% or more.

These losses are in addition to those of recent years: This process has several stages:

  • Between September 2017 (based on the change in mobility during the government of Mauricio Macri) and December 2019, retirements and pensions and other social benefits deteriorated by 19.5% in relation to inflation.
  • In 2020, and withAlberto Fernández, with the differentiated increases by decree, retirements and pensions increased between 35.3% and 24.3% versus inflation of 36.1%.
  • In 2021, with inflation at 50.9%, end-to-end increases were 52.7%.
  • In 2022, the mobility formula yielded 72.5% versus an annual inflation of 94.8%. A loss of 11.5%.

SN

Source: clarin

All business articles on 2023-12-07

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Business 2023-12-07T11:19:15.527Z

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