Due to the peak inflationespecially of the food, lodging and medical expenses the value of the basic basket of seniors or retirees and retirees increased by 107.8% in one year: It’s already worth $202,064.
This value was achieved “in a context in which four and a half million pensioners live They charge a minimum credit of $58,665 plus a $15,000 bonus. While the Universal Pension for the Elderly (PUAM) is $46,932 plus bonus”, according to the calculations of the Ombudsman for the Third Age of the City of Buenos Aires.
At the end of March 2022, the basic basket amounted to $97,238.
The items that make up this basket for the elderly are food, hygiene and cleaning products, medicines and pharmaceutical supplies, taxes and services, transport, clothing, accommodation and recreational expenses.
“The category of drugs contemplates a variety of drugs for different pathologies, given the discount that is made in pharmacies according to PAMI and other social works with discounts for pensioners”, according to Eugenio Semino, Guarantor for the Third Age who added “that almost three minimum incomes are needed to cover a basic basket”.
Of the $202,064 worth of the basketcondominium fees represent 30% ($59,000). Food $41,233. Another 12% ($24,774) of medicines and pharmaceutical supplies.
Semino states that “pensions must be effectively recomposed, with increments built into assets, applied proportionally across the entire scale. There is no other way out.”
Pensions and pensions have grown, according to the mobility formula, below inflation. This happens because the formula takes into account the evolution of wages and the collection of taxes that go to social security, without any guarantee against price increases.
Given this deterioration, the Government is increasingly granting reinforcements or bonuses for retirees and lower paid retirees, excluding the rest of the beneficiaries of the scheme.
The loss of social security assets was very strong during the previous government (-19.5% between September 2017 and December 2019), then decreased again with the increases granted by decree in 2020 and with the mobility formula implemented starting from 2021, with greater intensity among those who have not received any bonus.
Last weekIMF staff returned to office with the position that no moratoriums should be applied or bonds should be granted to pensioners with lower wages and that the increases must be applied according to the mobility formula. And among his arguments he underlines that this was the Government’s commitment in June 2022.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.