A study conducted by the Argentine Budget Association (ASAP) has shed light on the retirement system’s performance in December 2023. According to the report, the average assets of new retirees who did not appeal for a pension moratorium were $311,622, while those who retired with the moratorium had an average of $160,397. This highlights a significant difference in retirement benefits based on whether or not individuals appealed for a pension moratorium.
The average salary of registered workers in December was $484,298.40. However, only 64.3% of retirees with 30 or more years of contributions received their “historical” 82% mobile due to various factors such as fees and other charges associated with the moratorium. Those with a lower number of years of contributions received even less than this percentage, further exacerbating the issue.
Retirees with the moratorium earned an average income that was only 51% of those without it. Furthermore, retirees with informality may have been affected by higher fees that could reach up to 120 months if they applied for a moratorium. The minimum retirement asset in December was $105,713 plus a $55,000 reinforcement or bonus for some retirees. Out of all retirees in the General Regime, 85.2% retired due to the moratorium while only 14.8% retired without it.
A bill has been proposed to Congress to repeal the last pension moratorium known as “Pension Debt Payment Unit.” If passed, this law would reduce informality’s impact on retirement benefits and provide higher benefits for those who appeal for a pension moratorium at age 65 but still have limited benefits due to labor informality and lack of oversight.
In conclusion, despite efforts to address the crisis related to labor informality and lack of oversight in the retirement system, challenges remain due to these factors’ impact on retirement benefits and overall financial stability.
The ASAP report showed that in December 2023, there were approximately 5 million retirees and pensioners in Argentina’s General Regime system – out of which around half were forced into early retirement due to economic hardship or other reasons.
In addition to high levels of informality covering about 40 percent of workers nationwide – which results in lower wages and fewer social security contributions – other factors such as low life expectancy rates also contribute significantly towards Argentina’s financial instability.
To address these issues effectively requires sustained attention from policymakers and stakeholders alike – through measures such as increasing awareness about social security schemes among workers and employers alike; improving accessibility and affordability for those seeking pensions; promoting better employment conditions; investing more resources into healthcare services; encouraging innovation within different sectors; developing new strategies for promoting entrepreneurship; strengthening international relations; etc.
Ultimately, creating sustainable solutions that can address long-term problems will require collaborative efforts between governments, businesses leaders/entrepreneurs/innovators/experts across multiple fields & industries worldwide!
