The government managed to reverse the trend in the first six months of 2023 and began to replenish the country’s depleted piggy bank. pensionscurrently stores total €5.3 billion. entered into force on 1 January 2023 intergenerational equality mechanism The increase in social security contributions (MEI), which manages all wage earners and is mostly funded by corporations, begins to feed into what is known as the Social Security reserve fund. However, funds payable for future benefits represent 10% of the current total when first paid 10 years ago. Jose Luis Rodriguez Zapatero and then and with greater enthusiasm Mariano Rajoy they then had to resort to the piggy bank to pay the costs incurred from Social Security.
The peak of the reserve fund was reached in 2011 when they came to the store. 66,815 million euros. From then on, available funds began to dwindle, the economic crisis and mass layoffs affected the income stream. Fewer people contributing means less disposable income. At the same time, spending increased, which today is described as inappropriate by the current Minister of Social Security, José Luis Escrivá. The reserve fund was depleted until it reached a minimum of 2,138 million euros in 2019.
For the first time in five years, the Social Security piggy bank is experiencing a significant increase in its available funds, although it is still a long way from the times before the housing bubble burst. In the first six months of the year thisbed‘ increased from the current 2,141 million euros to 5,300 million euros. Its amount has doubled, although it is still very weak.
To put it in perspective, the State pays around 11,997 million euros each month (more than double the current piggy bank). Considering that SGK paid the extra summer salary in June, the payment for that month was EUR 23,692 million. In other words, it is not enough to pay even a quarter of that salary with the available resources.
“According to SSK estimates, the fund will close 2023 with 5 billion 347 million, the highest level since November 2018, thanks to the revenues from MEI and the surpluses that SGK will generate after donating its stability reserve. for professional contingencies,” the ministry reported on Wednesday.
The prediction is that this piggy bank will continue to get fatter in the coming years. On the one hand, due to the increase in the active working population, which currently reaches an all-time high of 20.8 million people. On the other hand, the last package of measures in the pension field will come into effect from next year. This includes the increase in MEI social contributions and the consequent gradual increase in the maximum contribution bases and the surcharge applied to the highest salaries. Measures that the government hopes will continue to feed the pension piggy bank and build up enough cushions to pay for benefits in the future when there will be more retired and less active workers.
This latest pension reform, which will be implemented gradually by 2050, has been approved by the European Union, but organizations such as the Independent Financial Responsibility Authority (Airef) or the Bank of Spain have criticized revenue growth for exaggerating. that new measures such as adjustment or new income will be necessary to make the capacity and system sustainable.