Spain Social Security Faces Record 14.47 Billion-Euro Pension Bill as Average Retirement Pay Hits 1,574 Euros
Updated
Updated · Surinenglish.com · Aug 25
Spain Social Security Faces Record 14.47 Billion-Euro Pension Bill as Average Retirement Pay Hits 1,574 Euros
1 articles · Updated · Surinenglish.com · Aug 25
Summary
14.47 billion euros will be paid out in August to 9.5 million pensioners, a record monthly bill for Spain's Social Security system and 6.2% higher than a year earlier.
A 2.7% inflation-linked rise in contributory pensions this year drove the increase, lifting the average retirement pension 4.5% to 1,574.90 euros and the system-wide average pension 4.6% to 1,373.44 euros.
10.63 billion euros of the total goes to retirement pensions alone, while a long-running gap persists between employees under the general scheme, averaging 1,733.70 euros, and self-employed retirees at 1,062.10 euros.
1,707.20 euros is now the average for newly awarded retirement pensions, reflecting higher contributions from baby boomers whose growing retirement wave is expected to intensify pressure on the system.
136 billion euros of Social Security debt was outstanding in June—up 7.9% year on year and equal to 7.8% of GDP—after years of state support because worker contributions no longer cover costs.