Collecting the minimum retirement in Argentina last February meant having agreed to a income without bonus that represented 156 dollarswhile with the bonus of $15,000 I got to about 195 dollars, measured in the price of the parallel dollar; This is $250 less than in 2017, when the highest retirement value in terms of the US currency occurred. This is explained by a Focus Market analysis prepared for the Naranja X Financial Education Blog.
Retired: ANSES made official the March increase of 17.04%
The plasma analysis evolution of the Minimum Retirement in dollars over time, comparative versus the rest of the pensions in Latin America, for example, where it is clear that only in Venezuela the minimum credit is lower with just US$6 dollars; while in the opposite corner Ecuador appears with US$450, although for workers with more than 40 years of contribution; closely followed by the neighbor Uruguay, with US$447.
Damián Di Pace, economist and director of the consultancy that carried out the study, expressed his concern about the sustainability of the Argentine pension system. “The lack of private employment generationthat is, new contributors in relation to the income of the largest number of retirees and pensioners, makes it necessary to reduce the collection pyramid downwards by expanding the beneficiary base”, explained.
Happens that, while in 2016 there were 2.1 contributors to the system for every 1 that received, today it fell to 1.6 contributors for each retiree that received when at least 3 active contributors would be needed.
For the economist, this leads to pensions looking so depressed compared to the rest of the region.
“Argentina is among the last positions worldwide with respect to the sustainability of the system in the future. In turn, today the system has more retirees who receive a moratorium without having contributed than retirees who have contributed to the system”, he commented.
devalued purchasing power
The retirements in the country have been losing strong purchasing power in recent years against the price variation in Argentine pesos and in terms of its value in dollars.
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In Di Pace’s view, “until now the Retirees have been adjustment variables in all their scales. In fact, those who have made the greatest amount of contributions throughout their working life when they exceed the 2 minimum unperceived salaries bonus for what which has represented a loss of the purchasing power of collection in recent years”, explained the economist.
The study also looks at the loss of purchasing power over the years.
The value of the Basic Food Basket (CBA) the value of the fixed line of indigence, that is, the people who have incomes below that level are people who are in conditions of indigence.
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The Focus Market study explains that since the year 2016 to 2023 The number of basic baskets that a retiree who receives the minimum could buy (no bonus) ranged from a 2.3 and 4.1in case of observing retirement plus a bonus the number of baskets that can be purchased increases to 2.9 and 4.5.
However, it is 2023 the lowest levels of purchasing power are recorded, since you can access only 3.2 and 2.5 baskets with and without bonus, respectively. “Mainly it is due to the fact that, although the minimum wages increased by 17.04% by January 2023, inflation and the increase in food rose at a faster rate than the increase in retirement,” the report explains.
LR
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