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The average amount of a check for delayed retirement is around 20,000 euros

The Secretary of State for Social Security and Pensions, Israel Arroyo, said this Thursday that Social Security is currently paying…

By admin , in news , at May 26, 2022

The Secretary of State for Social Security and Pensions, Israel Arroyo, said this Thursday that Social Security is currently paying the average amount of a check as a single payment. delay in retirement Beyond the legal age is around 20,000 euros.

During his appearance before the Senate Labor, Inclusion, Social Security and Migration Commission, Arroyo explained that this check is being requested mostly by low-income pensioners, which may be due, he said, to the fact that that they choose to collect profits. Delay in your retirement, for example, by not applying for a loan from a financial institution.

The first phase of pension reform, implemented since last January, provides workers who delay their retirement, the possibility to improve their pension month after month, or collect all those benefits in a single payment. , an option that Social Security decided to offer after surveying people. Nearing retirement age.

Social Security has come to pay 100,000 euros

Arroyo pointed out that this incentive in the form of exceptional payouts is proving attractive to a more diverse profile of pensioners and although its average amount reaches 20,000 euros, Social Security has come to pay more than EUR 100,000 in some cases. Employees who delayed their retirement by more than ten years.

«It’s not like they increase your retirement pension by 50 euros every year because they give you 8,000 euros in one go. We think this element will give people an alternative to this possibility of delaying retirement, although the fundamental thing is to eliminate the clause of forced retirement in collective bargaining”, he explained.

Arroyo has pointed out that the proportion of pensioners who delayed retirement and opted for a single check has increased “rapidly” and now accounts for nearly half of those who are entitled to this incentive to retire later from the labor market. . Despite this, he has said that the ministry will launch an information campaign “soon” to promote the measure.

This push to delay retirement is one of the effects of:In the first phase of pension reform And it will be more noticeable next year, according to Arroyo. However, he insists that “great effects of the reform” will be seen in the long term.

“The reform of the pension system has a very long term impact and it is very difficult to see its effects in the short term. When they are well designed they have no effect in the short term, otherwise they have been done in a panic attack. To provide stability and let workers know what to expect, they have to have a gradual impact and a long transitional period.”

Increase Pension with CPI

During his appearance, Arroyo defended the ‘star’ measure of pension reform: its re-evaluation with the CPI, and pointed out that, in the context of current inflation, it would be “unacceptable” if pensions for the elderly were not raised because of inflation. That’s when they need it the most.

“It’s impossible not to make that climb. The opposite is that those harmed by an external situation that are not their fault are pensioners”, said Arroyo, who has condemned that sometimes “they are interpreted as” Words of the Governor of the Bank of Spain, Pablo Hernandez de CosoWith headlines that he “did not hear nor read” in his speeches.

In any case, he cautions that “the design of pension reform cannot be conditioned on how inflation is at a given point in time” and should be viewed with a “long light”, as inflation has a long history. The current peak is a “conjunction” and the Bank of Spain predicts it as well.

“We have been fortunate that we have had this correction approved before the peak of inflation. If this peak had been without this reform, it would have been difficult to negotiate this (increase in pensions). We will see what the average inflation is. But forecasts point to an average of 6% or 7%”, he said.

The Secretary of State has acknowledged that transferring the recommendations of the Toledo Treaty to pension reform is still a difficulty of its own, due to “some degree of ambiguity”, on the other hand “logical” recommendations.

Regarding Brussels’ views on pension reform, Arroyo assures that “the assessment of Brussels” on the reform “could not be more positive”.

The average amount of a check for delayed retirement is around 20,000 euros

2022-05-26 11:09:09