Spain: Record of Pension Spending in December

Madrid: The monthly payroll of contributory Social Security benefits amounted to 9,985.26 million euros on December 1, 2.31% more than a year ago, as reported on Tuesday by the Ministry of Inclusion, Social Security and Migration.

According to the data provided by the department headed by Spanish Minister Jose Luis Escriva, of two thirds of the payroll, 7,168.76 million euros were allocated to the payment of retirement pensions, which represents a growth of 2.95% in the last twelve months.

For its part, the payroll for widowhood pensions was 1,716.6 million euros, 1.44% more than a year ago, while that of permanent disability benefits stood at 934.83 million euros (- 0.68%) and that of orphans accounted for 138.48 million (1.13%) and benefits in favor of relatives, 25.59 million euros (2.35%).

The Ministry has found that of the 9,809,019 contributory pensions paid on December 1 (0.08% more than a year ago), 6,125,792 are for retirement, 2,352,738, for widowhood, 948,917 for permanent disability, 338,540 for orphanhood and 43,032 in favor of relatives.

However, the total figure for pension spending represents a fall of 0.3% compared to April, the first monthly decline in the historical series.

Regarding the average pension of the system, which includes the different classes (retirement, permanent disability, widowhood, orphanhood and in favor of relatives), this increased in the last year by 2.23%, to 1,017.97 euros per month of half. In the case of men, the average pension of the system was 1,236.85 euros, while the average monthly payment received by women amounted to 816.08 euros.

For its part, the average retirement pension amounted to 1,170.26 euros, 2.34% more than last year. Specifically, the new retirement pensions in November, the latest date available, are 6.17% more substantial than the new retirement pensions in the same month of 2019, rising to 1,371.62 euros per month on average. The new retirements caused in the General Regime amounted to 1,484.21 euros / month.

The average widow’s pension was 729.62 euros per month (2.05%).

Balance of registrations and cancellations
According to data from the National Social Security Institute (INSS), during the month of November (latest data available), 58,162 new pension registrations were registered.

If the annual accumulated is considered, from January to November 2020, 490,928 new pensions have been registered, 6.4% less than in the same period last year. On the other hand, since January 478,434 pensions have dropped, 14.6% more than the previous year.

In December 2020, 9.81 million pensions were registered, which represents a variation of 0.08% compared to the same month of 2017. If the number of pensioners is taken into account, this rises to 8.88 million pensioners. By sex, there are a total of 4.55 million male pensioners and 4.33 million female pensioners.

On the other hand, the Ministry indicates that the number of pensions belonging to passive classes in force in November 2020 was 646,996. The monthly payroll for these pensions amounted to 1,182.98 million euros.

The State Passive Classes Regime fundamentally includes military personnel and officials from the General State Administration, the Administration of Justice, the General Courts and other constitutional or state bodies, as well as officials transferred to the autonomous communities.

The Government proposes to increase the pension by 4% for each full year of contributions beyond the ordinary retirement age
The legal retirement age will rise to 66 years from January and the pension will be calculated with 24 years of contributions.

The Government will compensate in the pension the periods not contributed after having children

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