From 3,000 euros currently to more than 9,000 euros per month

The second part of the pension reform that the social agents are negotiating with the government includes two basic measures: an extension of the period of years that contribute to the calculation of the pension, and the abolition of the maximum contribution bases associated with the gradual increase in pension maximum pension the retirement. It is said to be progressive because the Department of Integration, Social Security and Immigration proposes that the increase in the pension occurs at a slower rate than the contributions that must be paid from the highest incomes.

Specifically, the government is proposing a 30% increase in prices Between 2025 and 2050at the same time more of the maximum pension in that period will be 3%that is, the path of benefit hike is ten times less than the contribution to be made to social security.

Since this procedure clearly contradicts the principle of contributions that governs the social security system, the government has planned a second phase of an intensive increase to reach a revaluation equivalent to 30%, which will increase the maximum contribution base. he The second phase Fifteen years – ending in 2065 – and that will mean that it is in these three decades that the maximum benefit is reached 12.7%. Accordingly, the cumulative increase until 2065 will be 16%.

It must be remembered that the ministry headed by José Luis Escrivá has taken care to make it clear that this hike will only be corresponding to the detection process Which has been identified as one of the measures to be included in the pension reform that has been communicated to the European Commission as a counterpart to the arrival of funds for reconstruction. This first part is time-limited: it will start in 2025 and end in 2050 for the maximum contribution and in 2065 for the maximum pension.

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However, in parallel, the government will implement an increase in maximum contribution bases and maximum pensions due to the progression of inflation. That is, to those percentages of increase which the executive expects on account of the discontinuance, It will add the percentage corresponding to the consumer price index. A path to increase contributions and pensions that will drink from two sources: the highest and the consumer price index.

This is how the pension will grow: exercise with the CPI of 2%

Here, the Pensions and Social Protection Research Group, made up of half a dozen professors and university professors who are experts in the field, conducts a practical exercise on the impact of the increase on contributions and on the amount of the social cap. Raising the insurance pension and applying a 2% CPI as an additional percentage of the expected increase through the discovery pathway.

The result: maximum pensions will grow by €6,738 in the next four decades. You’ll go from the current €3,059 per month to 9,797 euros per month in 2065. By then, the basic maximum contribution, which would qualify these exorbitant sums, would be €14,244 per month – from €4,495 per month -.

In the case of a maximum pension, the group of actuaries distinguishes Four stages evident in the process. With the increases of 0.115% per year provided for in the first phase, the maximum pension will reach 4,000 euros per month by 2030, while ten years later, around 2040, it will reach the figure of 5,000 euros per year. Before 2050, the figure of 6,000 euros will be reached (for that year, experts estimate the monthly total at 6,458 euros). In the final stage, which provides for an increase of 12.7% over fifteen years, the pension will grow even faster until it reaches 9,797 euros per month in 2065.

growing gap

The bigger problem involved in reaching such high pensions is whether or not there is a correlation with the level of contributions made to those high salaries that generate rights to these sums. The answer is no. The proposed measure is still in place subject to tax For Social Security those earning more than €54,000 a year (the current maximum contribution base) are required to pay more each year while their pension expectations will not increase by as much.

This forfeiture aspect of the proposal is reflected in the gap between the maximum contribution rule and the highest pension one chooses. According to the calculations of the research group, which also represents the Spanish Institute of Actuaries, it shows how to start from an already big difference. This year 2023, the income will be contributed on the basis of the maximum contribution (54,000 € per annum) to System A 25% more than the annual pension amount to which they are entitled to a maximum (42,829 euros per year).

However, the double rate of rise in contributions and pensions – remember, the former is expected to increase ten times more by 20250 – will increase that differential to 30% before the end of this decade. It will reach 40% in 2035 and around 2042 it will increase to 50%. Before 2050 there will be a 60% difference between what is contributed and what is received as a pension, while around 2052 the peak of the gap is reached, when salaries totaling €10,500 per month are set for a pension. 64% more than the pension to which they are entitled.

Already in the second phase of the increase in maximum pensions at a faster rate, which plans to revalue the amount by 12.7% in fifteen years, benefiting up to the aforementioned 9,797 euros per month, the gap will be reduced to 45%up to a maximum of 14,244 euros.

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