Many older adults cannot live on their retirement money 4:08

(CNN Spanish) -

The Government of Argentina formalized a 27.18% increase in pensions, based on the current pension mobility formula, in addition to a complementary bonus for minimum salaries.

Despite this, retirees' income continues to run behind rampant inflation.

The National Social Security Administration (ANSeS) confirmed that starting in March, retirements will see the aforementioned increase at all levels.

In this way, the minimum assets will go from 105,713 pesos (US$ 97 at the parallel exchange rate) to 134,445 pesos (US$ 123).

For their part, those who collect the maximum amount will receive 904,689 pesos (US$ 833).

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“The current formula is an increase based on a combined index between the variation in ANSeS collection and the variation in salaries of stable workers.

It occurs quarterly in the months of March, June, September and December,” explains pension lawyer Andrea Falcone.

The Minister of Economy, Luis Caputo, confirmed in an interview with the TN media that there will also be a bonus close to 70,000 pesos (US$64) for the beneficiaries of the minimum retirement.

As Caputo explained, in this way his income will reach 204,445 pesos (US$ 188).

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In any case, those who receive an income greater than the minimum will also receive a proportional adjustment that allows them to equal that figure.

For example, if the person charges 170,000 pesos (US$156), his additional fee will be 34,445 pesos (US$31).

Despite the updates, retirees continue to run after unchecked inflation.

The last adjustment, not counting the bonuses granted by the Government, had been in December 2023. So, while prices accumulated increases of 45.1% only between December and January, their income will barely increase by 27.18% in March.

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To this will be added the inflation of February and March which, according to the Central Bank's Market Expectations Survey, would be around 18% and 15%, respectively.

Thus, the accumulated inflation between December and March could be close to 78%.

“It is estimated that minimum retirees, with March inflation, will be 50% below inflation.

It is the largest reduction in Argentine history that is made to retirees,” Falcone anticipates.

Given this, the Government of Javier Milei adopted a policy similar to that of Alberto Fernández's administration, which consists of granting discretionary bonuses to adjust retirements.

This bonus reached 55,000 pesos (US$50) in February and will do the same in March with the complement of 70,000 pesos (US$64).

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