Due to high inflation, pensions suffer a double back: takes place at the time of payment first credit pension and, from now on, whenever they are adjusted by the mobility index.
At the time of retirement, the deterioration already begins, because the initial credit is determined on the basis of the average salary of the last 120 updated months. This update is applied on the basis of a coefficient calculated on the basis of the wage evolution of registered workers (RIP). And that coefficient has evolved below inflation. As a result, the pensioner’s initial credit begins with a loss more than significant.
Then, that initial credit is adjusted every three months from to mobility index which takes into account the variation of the wages and the tax collection which goes to the Social Security and which also varies below inflation.
So, to an initial credit reduced from “to life” it adds a mobility that the pension amount is getting smaller more and more.
According to official data, social security expert Elsa Rodríguez Romero has calculated that between March 2018 and December 2022 inflation was 752% and the salary update coefficient increased by 558%.
This update index consists of the junction of several indexes. In recent years it was based on the quarterly RIPTE (Taxable Remuneration of Stable Workers), but calculated on the basis of the two previous quarters (Macri management), which accentuated the deterioration in the face of accelerating inflation.
Since 2021, the update has been reverted to the previous Q1. This means that the salary index grew by 558% and the RIPTE by 592%for all those months.
To this loss was added that, in that same period, the increases in pensions and pensions, with the management of Mauricio Macri and later Alberto Fernández, had an increase of 514%below inflation and wages.
These pension increase percentages have not been altered by the bonuses that were granted during the current administration because they were not integrated into the assets and applied only to those with lower assets. This resulted in the calculation of the following increments on a wealth basis for all retirees and retirees reducedwithout considering the bonuses.
Ultimately, depending on when the person retired, the loss was double: when determining the initial credit and then with the increases received by decree (2020) and then based on the mobility indexes.
For this reason, Rodriguez Romero stated that “without a doubt, sharply rising inflation erodes both wages and pensions. in retirees the effect is “forever“, since his first salary was determined by salaries that had already lost their real value, and which, moreover, are updated with a salary index that also lost against inflation.”
“That first credit will never be changed. And if the increases in that credit don’t follow inflation, the loss of purchasing power it multiplies. the retired it is the big loser against inflationand so it will be, until its last resort,” concluded Rodriguez Romero.
Source: Clarin
