Monday, March 27

Coronavirus deaths cut 2021 pension spending by 3%

Spending on pensions will account for 12 percent of gross domestic product (GDP) at the end of 2021, “a figure less than 12.4 percent of that registered in 2020,” say sources from the Ministry of Social Security. The reduction of the item will therefore be 3.2 percent.

Part of this decline is attributed by experts to the savings that have occurred in the pension payroll originated after the deaths caused by the coronavirus among older people.

According to government data, 29,408 of those who died during the pandemic did so in nursing homes, to which should be added the elderly who died in hospitals.

In the opinion of Isabel Casares, president of the Organization of Pension Consultants (OCOPEN), “the high rate of deaths among retired people has reduced spending on pensions, which has not been offset by the increase in benefits of 0.9%. one hundred approved by the Government for this year. “

A GDP damaged by the pandemic

Another cause of this reduction in 2021 is attributed by the Ministry of Social Security to the fact that “2020 was conditioned by the impact of the pandemic on GDP.”

According to data from the National Institute of Statistics, GDP fell by 10.8 percent in 2020, while for this year the Bank of Spain expects it to rise to 4.5 percent.

For this reason, Casares confirms that “since GDP was lower in 2020, the proportion of pension spending increased, contrary to what is happening this year.”

December closes with increases in pensions

December will close 2021 with a rise in the payroll of contributory pensions of 3.24 percent, compared to the same month last year, to stand at 10,309.09 million euros. To the ordinary monthly payment, the extraordinary one has been added this month, which amounted to 10,917.52 million euros.

72.15 percent of the ordinary pension payroll, 7,438.44 million euros, has been allocated to the payment of retirement pensions. While 1,752.31 million euros were dedicated to widowhood pensions.

The payroll of benefits for permanent disability was 948.34 million, while that of orphans accounted for 143.18 million and benefits in favor of relatives, 26.82 million.

9,916,966 million of contributory pensions

Of the 9,916,966 contributory pensions paid in December, 6,218,551 were for retirement, 2,358,328 for widowhood, 953,591 for permanent disability, 342,218 for orphan and 44,278 for family members.

Regarding the average retirement pension, it reached 1,196.17 euros in December. That of the General Scheme was 1,340.78 euros per month, while the lowest was that of the Self-Employed Scheme, which reached 796.41 euros.