With the $ 10,000 bonus for December, January and February, does the minimum total retirement and pension income beat inflation?
This is what the government assures, which supports it in 12 months the increase is 107%.
To reach this percentage, the government compares the Minimum December retirement of $ 50,124 plus the bonus of 10,000 (totaling $ 60,124) with the December 2021 minimum retirement age, which was $ 29,062. But it omits that in December of last year, ANSeS paid a $ 8,000 bonuspursuant to decree 855/2021.
Consequently, for the comparison to be homogeneous, the $ 60,124 must be compared with the $ 37,062 of December 2021 ($ 29,062 + $ 8,000), which makes an increase of 61.9%, well below the forecast inflation of 100%.
If you take the quarter (December 2022, plus half bonus and January-February 2023), the income in those three months makes a total of $ 205,434. (60,124 x 3 + 25,062 of the half bonus).
A year ago, in those same months, the total income was $ 109,717 (29,062 x 3 + 8,000 + 14,531 of the half bonus). It will represent an 87.2% increase, below year-on-year inflation which is scheduled for January and February 2023.
Also, if you compare the $ 60,124 for the next 3 months with the $ 50,353 for September-November 2022, the increase is 19.4%. Consequentially inflation is expected to be below 6% per month for a quarter-over-quarter improvement of the total minimum income in relation to the increase in prices.
In all homogeneous comparisons, the total minimum income turn back in the face of rising prices.
Meanwhile, for those who do not receive any bonuses, the quarterly increase of 15.62% compared to a year ago, represents an accumulated increase of 72.5%, well below expected inflation, which is around 100%. This is a decline of around 27 points or 13.8% in one year, on top of the losses of the last 5 years.
If you add the 19.5% loss between September 2017 and December 2019 under the previous government, the setback due to the increases by decree of Alberto Fernández of 2020, and the increases without bonuses they received in 2020, 2021, in 2022 and will now receive the setback from one end to the other (September 2017 / February 2023) of those who perceive the having a maximum would exceed 35%.
Once again, the mobility formula is failing in the face of inflation. This is because that formula combines salaries and collections, but It has no guarantee or plan against advance prices.
Bonuses, on the other hand, have become more frequent and larger in amount acknowledgment or admission of such loss. With the aggravating circumstance that, not being integrated into current assets, they lead to a lower application of future increases, perpetuate the deterioration of pensions.
The conclusion is that, in different magnitudes, the deterioration of assets covers all pensioners and pensioners and the mass o pension expenditure is declining in real termsone of the commitments with the IMF.
NEITHER
Source: Clarin
