Pension spending reaches a record figure of 12.793 billion in July, 6.4% more

Jul 26. () –

In July, Social Security allocated a record amount of 12,793.8 million euros to the payment of the ordinary monthly payroll of contributory pensions, 6.4% more than in the same month of 2023, according to the Ministry of Inclusion, Social Security and Migration reported this Friday.

The ordinary monthly pension payroll exceeded 12 billion euros for the first time in July 2023 and this month it once again marks a new record after the increase in contributory pensions by 3.8% for this year 2024.

The Department headed by Elma Saiz estimates that pension spending stood at 11.5% of GDP in July.

Of the 12.793 billion euros spent in July on ordinary contributory pension payments, three quarters (73.1%) were allocated to paying retirement pensions, which amounted to 9.353 billion euros, 6.8% more than in July of last year.

Widow’s pensions received 2,108.9 million euros, 5.2% more than a year ago, while permanent disability benefits received 1,125.9 million euros (+6.2%).

The payment of orphan benefits amounted to 171.7 million euros (+4.9%), and the payment of benefits for family members totalled 34.23 million euros (+7.9%).

RETIREMENT, MAIN PENSION FOR 6.4 MILLION PEOPLE

In July of this year, 10,188,792 contributory pensions were paid, 1.33% more than a year ago, to 9.2 million pensioners, 1.2% more. Of the total pensions, 6.5 million were retirement pensions; 2.3 million were widow’s pensions; 968,204 were permanent disability pensions; 341,739 were orphan’s pensions, and 46,171 were in favour of family members.

Of the total number of pensioners (9.2 million as of 1 July this year), 4.6 million are men and 4.2 million are women. The number of pensions per pensioner is 1.1.

The main pension received is the retirement pension for 6.4 million people, of whom 60% are men; the widow’s pension is the main benefit for 1.5 million people (96% are women); the permanent disability pension is the main pension for 963,753 pensioners; the orphan’s pension for 323,700 people; and the family pension for 45,586 pensioners.

THE AVERAGE RETIREMENT PENSION IS 1,443.1 EUROS PER MONTH

Following the increase in pensions based on the CPI applied since the beginning of the year, the average retirement pension increased by 4.9% year-on-year in July, to 1,443.1 euros per month.

In the General Scheme, the average retirement pension amounted to 1,601.9 euros per month, compared to 963.6 euros per month in the Self-Employed Scheme. In the Coal Mining sector, the average retirement pension is 2,804.5 euros per month and in the Sea Sector, 1,598.9 euros.

The average amount of new pension registrations in the system amounted to 1,520.9 euros per month in June 2024 (latest available data).

DELAYED RETIREMENTS INCREASE

Of the new retirement registrations produced in the first months of the year (168,722), 70.1% were at ordinary age (119,598), while 10% correspond to the delayed retirement modality, compared to 4.8% in 2019.

However, according to the Ministry, the number of early retirements has been reduced “considerably”, since 29.1% of the new registrations registered were early retirements, when in 2019 it was 40%.

The average pension in the system, which includes the different types of pension (retirement, permanent disability, widowhood, orphanhood and in favour of family members), increased by 5% year-on-year, reaching 1,255.7 euros per month on 1 July this year.

The average widow’s pension in July was 896.8 euros per month.

The Ministry also reported that in June (the latest available data) the average time taken to resolve files was 8.94 days in the case of retirement pensions and 9.53 days in the case of widowhood.

In this regard, the Department headed by Elma Saiz has recalled that, by law, the maximum resolution period is 90 days for both retirement and widow’s pensions.

PASSIVE CLASSES

On the other hand, the number of pensions belonging to passive classes in force at the end of June this year (latest data available) was 710,701, a figure 2.2% higher than that of the same month in 2023. The monthly payroll of these pensions amounted to 3,132.3 million euros, 7.2% more.

The State’s Passive Classes Regime fundamentally includes military personnel and civil servants of the General State Administration, the Administration of Justice, the Cortes Generales and other constitutional or state bodies, as well as civil servants transferred to the autonomous communities.

MORE THAN 790,000 PENSIONERS RECEIVE SUPPLEMENT FOR GENDER GAP

797,072 pensioners received the gender gap supplement in July, the aim of which is to gradually correct the difference between the average pension received by a man and that received by a woman.

The average monthly amount of this pension supplement, received by 89.5% of women, is 70.6 euros. Of the 797,072 supplemented pensions, 24.2% correspond to pensioners with one child (192,544); 47% with two children (374,814); 18.8% with three children (149,885), 10% (79,829) with four children.

This supplement, in force since February 2021, consists of a fixed amount which, after revaluation for 2024, amounts to 33.2 euros per month per child. It is requested at the same time as the pension application.