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Wednesday, May 25, 2022
HomeLatest NewsThe wages of new retirees under 65 already exceed the average wage

The wages of new retirees under 65 already exceed the average wage

Government of Pedro Sanchez is trying to reform the pension system after the reforms of 2011 and 2013, which guarantees benefits and purchasing power current pensioners and, at the same time, it does not cause costs, in a context in which baby boomer generationthe largest, with a salary much higher than their parents and with a long career contribution, are already starting to retire and will do it en masse over the next decade. Putting it all together with a bet on timid reform is a near-impossible task, and Brussels has already issued several warnings to ensure that the changes are deep enough not to bankrupt the system.

reports, statistics and forecasts point to the many obstacles and inconveniences associated with the payment of pensions, in a critical phase of high unemployment, conjuncture and slowdown in the entry of immigrants, together with low birth rates and increased life expectancy, as well as penetration into the flurry of “boomers”. The situation, exacerbated by the coronavirus pandemic and the invasion of Ukraine, does not look good in the medium and certainly in the long term, and there are many signs that do not make us optimistic, although some of this can be solved by not very painful changes, such as an increase in the period of calculation of pensions, a clear commitment of the Toledo Pact and the European Union.

Last welfare statistics This already points to a situation that should be taken seriously: new pensioners retiring before age 65, 40.6% of the total, already have wages higher than the average worker. Thus, the average contribution base for December 2021 was 1,970 euros gross at the national level, which, multiplied by 12 payments, is 23,640 euros. Meanwhile, the average pension in March for pensioners under the age of 65 was 1,727 euros in March, which is 14 payments equal to 24,178, almost 500 euros more per year than for workers.

Workers from Ourense retire at 65.6 years, while workers from Gipuzkoa with high salaries can retire much earlier, at 64.1 years.

This difference will be much larger in the coming years if pensioners continue to increase their benefits in line with the consumer price index (CPI) and employees continue to lose purchasing power in negotiations about their collective agreements. In particular, pension statistics show that the average retirement age remains unchanged compared to last year, 64.7 years, the increase of which is one of the keys to the pension reform developed by Jose Luis Escriva. The increase is from 2018, when retirement occurred at 64.2 years, five months that Minister Escrivá considers important in dealing with increased spending.

At the same time, the deep differences that exist between communities and provinces are shown, with the elderly Ourense having the lowest pensions in Spain, in which its workers retire at an average of 65.6 yearsY “rich” Gipuzkoa, allowing its employees to retire at 64.1 with high benefits. While the new early retirees of Melilla, of very little significance due to the number of refusals, receive an allowance of 2,138 euros, which is 30,000 euros gross per year, and residents of Bilbao receive 1,828 -27,000 euros per year, retirees Zamora, who decide to retire before the age of 65 hardly 1395 euros and Salamanca, 1480 euros. After residents of Melilla and Bilbao, the largest pensions under the age of 65 are in Alava (1893 euros), Madrid (1875 euros), Guadalajara (1864 euros) and León (1848 euros). While new pensions average 1,483 euros, almost 100 euros more than last year, and in the first three months of 2022, more than 87,000 workers have already left the labor market, 35,500 in advance.

In less than a decade, 3.9 million employed boomers, now in their 55s, will retire after decades of investment.

The influx of retirees that will occur in the coming years, with the arrival of the largest generation, the “baby boom” generation born between 1958 and 1977 at retirement age, will not only cause welfare spending without income sufficient to counteract the increase, as warn various organizations such as Independent Financial Responsibility Authority (AIReF), The Bank of Spain, the Institute for Economic Research (IER) or the International Monetary Fund (IMF) will also have a strong impact on the labor market, in which generational change in many areas and professions will be unmanageable and will generate a significant labor shortage, despite the fact that a large number of citizens will continue to be unemployed.

tables National Institute of Statistics the third quarter of 2021 indicate that in less than a decade, 3.9 million working boomers, now in their 55s, will retire after decades of contributions and, of course, later and with a smaller pension than they expected before successive reforms of the system . To these will be added another 630,000 unemployed of the same age, who in most cases will subsist on the subsidy intended for the elderly until retirement. In this context, many jobs in many industries, occupations and sectors will remain unfilled, from construction, transport and agriculture to health care, education or public administration, not only because of poorly targeted replacements for insufficient skills training to cover labor demand. also because the labor force is not enough.


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