Real retirement data and pension trends for February
February saw record allocations to SGK totaling 11,921.9 million euros, with contributions rising 10.8 percent from the same month in 2022 after an 8.5 percent revaluation for the year. The Ministry of Social Security and Immigration reported these figures on Friday.
Pension expenditures exceeded 11 billion euros for the first time in January, driven by the pension reform which boosted payments at an 8.5 percent pace through 2023 in line with average inflation from December 2021 to November 2022.
The department led by Jose Luis Escrivá estimates retirement spending at 11.7 percent of GDP during the last twelve months, the same as 2022 but below 2020 when it reached 12.4 percent of GDP, a year shaped by pandemic effects on GDP and also 2021.
Of the 11,922 million euros allocated in February, nearly three quarters (72.7 percent) were used to fund pensions amounting to 8,675.1 million euros, up 11.6 percent from February of the previous year.
Support for widows accounted for 1,994.4 million euros, up 9.5 percent year over year, while permanent disability benefits received 1,058.8 million euros, a 7.7 percent rise.
Orphan benefits totaled 162.4 million euros, up 8.9 percent, with family allowances contributing 31.2 million euros, an 11.6 percent increase.
Real retirement coverage for 6.2 million individuals
In February, 10,007,629 contributions were registered for retirement, 0.9 percent above the same month last year, covering just over nine million retirees. More than 6.32 million pensioners received retirement benefits; about 2.35 million were widows, 944,911 were permanently disabled, 340,315 were linked to orphan or family benefits, and 44,692 were linked to relatives.
Total retirees stood at 9,067,267 as of February 1 this year, comprised of 4.6 million men and 4.5 million women, with roughly 1.1 pensions per retiree.
The main pension for 6.2 million people accounted for 60.6 percent of recipients, of which men represented the majority. Widows were the primary benefit for 1.6 million people, with 95.9 percent of them women. Permanent disability benefited 939,768 retirees, while orphans and relatives gained 322,994 and 43,989 respectively.
Pensions above 1,370 euros per month
Following the 8.5 percent increase, the average pension in February rose 9.8 percent year over year to 1,370.8 euros per month. In the General Programme, the average pension stood at 1,530 euros monthly, versus 912.9 euros in the Self Employment Regime. Coal Mining averages reached 2,670 euros, and Marine pensions averaged 1,520.8 euros.
The January data show the average new pension enrollment at 1,639.6 euros per month, the most recent figure available.
The February average widow pension was 849 euros per month, up 9.5 percent from the previous year, while the average pension across the system including retirement, disability, widowhood, orphanage and other family benefits rose to 1,191.3 euros per month as of February 1, up 9.8 percent.
The ministry reported that in 2022 the average processing time for pension cases was 21.15 days and 19.46 days for widows’ pensions. Escrivá’s department continues to enforce a maximum processing time of 90 days for both retirement and widower pensions as required by law.
Passive classes
As of the end of January this year, the number of active pensions in passive classes rose 1.7 percent year over year to 692,901, with the monthly payroll for these pensions totaling 1,464.6 million euros. The State Passive Class Regime primarily covers military personnel, General State Administration officials, officials assigned to autonomous communities, and the Administration of Justice, the General Courts, and other constitutional bodies.
Gender gap subsidies
As of February 1, 431,956 pensions received a gender gap supplement designed to gradually equalize the average pension between men and women. The average monthly amount of this supplement is 66 euros, of which 92 percent is received by women. Among these 431,956 pensions, 22.3 percent belong to retirees with children, 47.3 percent to those with two children, 19.6 percent to those with three, and 10.8 percent to those with four children.
The supplement, effective since February 2021 and indexed through 2023, adds 30.4 euros per month per child, applies from the first child up to a maximum of four, and is requested when the pension is applied for.