As Congress prepares to debate a new mobility formula, a report from the Argentine Institute of Fiscal Analysis (IARAF) reveals that despite adjustments for inflation since April, retirees receiving the minimum salary are experiencing significant losses. In June, these retirees, who also receive an additional bonus, collected less than they did in 2017. For example, those receiving three minimum salaries saw a 44% decrease in their monthly assets compared to 2017.
Nadin Argañaraz from the IARAF emphasizes the importance of the government’s decision regarding compensatory bonuses, especially as inflation rates continue to rise. The freezing of bonuses has led to retirees falling even further behind inflation rates. Argañaraz suggests that Congress should prioritize changes to expenses or income to ensure the sustainability of pension payments going forward.
The situation is dire for many retirees, with some groups facing losses of up to 77.7% compared to expected inflation rates. The Chamber of Deputies has approved a project to improve real assets by 7.2%, but the President has expressed concerns about the fiscal balance. Balancing the needs of retirees with overall fiscal sustainability is crucial.
In conclusion, Argañaraz stresses the urgency of finding a solution that guarantees retirees can recover their purchasing power from 2017. With limited time for discussion, it is crucial for society to prioritize the well-being of those who have contributed during their active lives. Making decisions to ensure the continued financial stability of pension payments is essential for the future.