Pensioners earn purchasing power for the first time since 2015

pensioners spaniards have won this year, about a percentage point in purchasing power. This is the first time that add up to buying power from 2015. Also earnin

Pensioners earn purchasing power for the first time since 2015

pensioners spaniards have won this year, about a percentage point in purchasing power. This is the first time that add up to buying power from 2015. Also earning ability to purchase the majority of the employees, for increases in the agreement, and the officers, whose salaries, in both cases, up more than 2%. Although the CPI accelerated at the end of the year, raising rates in September and October, unknown, since 2016, the rate for December was finally at 0.8%, as reported by INE, this Monday. They are eight tenths below that of the 1.6% that went up the pensions with the update of the beginning of the year. The account also comes for the recipients of pension if you take the annual average, which is slightly below 0.7%.

“In 2019, there will be a gain of purchasing power of the pension for the first time in years,” said the president of the Government on functions, Pedro Sanchez, at a press conference after the last council of ministers of 2018, when it adopted the royal decree act which climbed 1.6%, the pension for the second year in a row. Then, the forecast of the CPI for the closure of 2019 was in the 1%, so that it was expected that pensioners would be, at the end of the year, six-tenths of a point richer.

MORE INFORMATION

The CPI accelerated to close the year at 0.8% for the fuels of The year in which prices rose less than the salaries Sanchez tied the rise in pensions and the minimum wage to the formation of the new Government

in The end, it will be something more. The INE reported Monday that the CPI of December of 2019 was 0.8% year-on-year, four tenths more than in November, due to the increase in fuel prices, which fell a year ago. As expected the rush of the end of the year, above all “by the effect step that occurs when you compare rates from the end of last year, when there was a strong drop of fuel", explains María Jesús Fernández, senior economist at Funcas, the research department of the former savings banks. In any case, the arreón final was lower than expected by the institution –provided for a rate of 1.1%, according to Fernandez by the unexpected behavior of the light, which has been marked this month's minimum prices from five years ago and still in the downward trajectory. In December, the average price has been from 33.8 euros per megawatt/hour, a 45.3% lower than the same month in 2018.

In any case, the final push leaves the rate at 0.8%, half of which went to the pension in January. Are eight-tenths of a gain of purchasing power, a joy that pensioners were not from the rachitic 0.25% by 2015. This year, pensions are up a minimum of 0.25%, which marked the reform of the Index of Revaluation of the Pensions (IRP) approved by the Government of Mariano Rajoy in 2013, a figure that confronted with prices stagnant (0%).

Evolution of pension

Upload

initial

Inflation

real**

Compensation

2008

2,4

2%

0,4%

2009

2%

0,3

1%

1,3%

2010

2,3

2011

2,9

0%

1%

2012

2,9

2%

2013

– € 1,000*

0,3

+ eur 1,000*

1%

2014

0,25%

-1,0

2015

0,25%

0,0

2016

0,25%

1,5

2017

0,25%

1,2

2018

1,6%

0,1%

1,7***

2019

1,6%

0,8

* Pensioners who earn less or more than 1,000 euros.

** Data of November, in %. Since 2012, when pensions are no longer linked to the CPI, it happens to be taken as a reference to the data of December.

*** In 2018 we used the annual average.

Source: National Statistics Institute (INE).

THE COUNTRY

Evolution of pension

Variation

power

purchasing

Upload

initial

Compenş-

sation

Inflation

real**

2008

2,4

2%

0,4%

0

1,7

2009

2%

0,3

1%

1,3%

0

2010

2,3

2011

2,9

0%

-2,9

1%

-1,9

2012

2,9

2%

2013

– 1.000 €*

1,7

0,3

+ 1.000 €*

1%

0,7

1,25

2014

0,25%

-1,0

2015

0,25%

0,25

0,0

2016

0,25%

-1,25

1,5

2017

0,25%

1,2

-0,95

2018

0

1,6%

0,1%

1,7***

2019

1,6%

0,8

0,8

* Pensioners who earn less or more than 1,000 euros.

** Data of November, in %. Since 2012, when pensions are no longer linked to the CPI, it happens to be taken as a reference to the data of December.

*** In 2018 we used the annual average.

Source: National Statistics Institute (INE).

THE COUNTRY

Evolution of pension

Upload

initial

Inflation

real**

Variation power

purchasing

Compensation

2008

2,4

2%

0,4%

0

1,7

2009

2%

0,3

1%

1,3%

0

2010

2,3

2011

2,9

0%

-2,9

1%

-1,9

2012

2,9

2%

2013

– € 1,000*

1,7

0,3

+ eur 1,000*

1%

0,7

1,25

2014

0,25%

-1,0

2015

0,25%

0,25

0,0

2016

0,25%

-1,25

1,5

2017

0,25%

1,2

-0,95

2018

0

1,6%

0,1%

1,7***

2019

1,6%

0,8

0,8

* Pensioners who earn less or more than 1,000 euros.

** Data of November, in %. Since 2012, when pensions are no longer linked to the CPI, it happens to be taken as a reference to the data of December.

*** In 2018 we used the annual average.

Source: National Statistics Institute (INE).

THE COUNTRY

Both in 2016 and in 2017, we repeated the minimum raise of 0.25%, below inflation, but in 2018, Rajoy agreed with the PNV to leave parked in the new system, and approved an increase of 1.6% and 3% for minimum pensions. That year inflation in December stood at 1.2%, but reference was made to the annual average, which was 1.7%, which was offset to pensioners with a paguilla of 0.1 per cent in February of this year.

For the minimum retirement pension of 642,9 euros, it means a gain of purchasing power of 5.14 euros per month, about 72 euros per year if one takes into account the paid for 14 months. For a person who receives a maximum pension of 2.659,41 euros a month, it is as if he had won at 21.3 euros per month, almost 300 euros more a year. If, as is recommended by the experts, we stick to the annual average, the inflation datum of 2019 is not even 0.7%, so the profit of purchasing capacity would be greater.

Employees and officers

Not only the pensioners earn purchasing power in 2019. Also, and to a greater extent, have done the majority of workers and employees and officials. The economic recovery was slow to reach for the wages, but in 2019, after four years of growth, finally experienced increases significant. “The wages agreed upon at the convention have grown, at the end of November, 2.3%,” recalls Mari Cruz Vicente, secretary of Union Action of CC OO, while that of the officials, thanks to the agreement reached in march 2018, did 2.5% from January. So are, respectively, 1.5% and 1.8% more wealthy. Not to speak of 22.3%, up to 900 euros, and raised the minimum wage after the agreement between PSOE and we Can by the end of 2018.

Vincent appreciates that wages “to recover part of the purchasing power lost since the crisis”. “That was the goal of the IV Agreement for Employment and Collective Negotiation signed between trade unions and employers ' year ago and medioy by now is covered the objective,” he recalls, noting that “we still lack a year, so that wage policy should be the same” in 2020. Gonzalo Pino, UGT, also celebrated the rise. “It was time for policies that serve for the recovery of wages” and called for rises of around 3% for the next year%.

To 2020, the Government intends that the SMI re-upload, even though it leaves in the hands of the social partners the rate of climb. Yes has set a 0.9% revaluation of the pension, although this will have to wait for a Government to be embodied in a decree law to maintain the suspended reform of 2013, as it happened in 2018 and 2019. “The CPI will be in line with that climb”, anticipates María Jesús Fernández, recalling that the forecast of Funcas the 1%. “The figure put forward by the Government is feasible, although it will always depend on the price of energy: fuels and electricity, and these are unpredictable”.

What is not yet clear is which formula will be used to revalue the pension from 2021 onwards. The idea of the Government of Pedro Sanchez was to use the annual average of inflation in order to update them, but the definitive reform of the system imposed by Rajoy in 2013 was in the air to not come out ahead in the general budgets of the State. CC OO advocates a system similar to the one that had, until 2013, to take the CPI as the reference and include a clause of warranty to compensate for the increases above what is expected. That collides with the Social Security deficit, which has accumulated a debt of more than 50.00 million.

Updated Date: 31 December 2019, 03:00

You need to login to comment.

Please register or login.

RELATED NEWS