The ten million citizens who receive some form of pension (mostly pensioners) will begin to receive the payment of the extra Christmas installment in their bank accounts from today, together with the monthly instalment, as happens every year in this period such as Social Security Sociale settles these payments.
In reality, the Social Security Treasury does not plan to carry out these operations until next December 1st. But in practice, most banks advance these payments and materialize them in their customers’ accounts so that they have these amounts available for the next few days. The day on which this payment will be made will depend on the financial policy of each entity, so each customer is advised to consult their branch, as there is no specific day of mandatory fulfillment.
This payment will once again put a greater strain on the accounts of Social Security, which already spends almost 13 billion euros every month on the payment of all types of pensions. Three quarters of this amount correspond, as usual, to old age pensions. Specifically, according to the latest available data (October this year), these pensions represent 73.1% of the payrolls paid by the system, approximately 9,431 million euros. For widows’ pensions, 2,113 million euros have been allocated, while the paychecks for permanent disability amount to 1,145 million; that of orphans, at 171 million euros and that of benefits to family members, at 34 million.
Furthermore, the average pension from the social security system is 1,259.6 euros, 5.2% more than the previous year. This average includes the amount of the different types of pension (old age, permanent disability, widowhood, orphanage and for relatives). The average old-age pension, received by over two-thirds of all pensioners (6.5 million people), stands at 1,447.4 euros per month, after having increased on average by 5% compared to October 2023.
By scheme, the amount of the average old-age pension in the General Scheme is 1,605.5 euros per month, while in the Special Scheme for Self-Employed Workers it is 965.8 euros. In the coal mining sector, the average pension amount is 2,808.9 euros, in the maritime regime 1,602.7 euros. The monthly amount of new pension registrations in the system rose on average to 1,644.2 euros in September, according to the latest available data.
Furthermore, this same week pensioners will know what the revaluation of their pensions should be for 1 January 2025. With the latest law reform in hand, the Government will have to calculate this increase based on inflation data for the last twelve months , starting from December 2023 until November this year. Thursday will be the day on which INE will offer the advance CPI data for November, with which the average to be applied can be calculated.
In any case, the increase in pensions for next year will be lower than the revaluations of recent years. Especially when compared to 2023, when benefits increased by more than 8.5% on average, due to skyrocketing inflation, which forced the executive branch to inject more money into Social Security accounts. In 2024 pensions were revalued by 3.8%. For now, average annual inflation is less than 3%, awaiting definitive data from the Statistics.
How does the Christmas pension payment impact the overall budget of the Social Security system?
Interview: The Christmas Pension Payment Insight
Editor: Welcome to Time.news! Today, we’re excited to have Dr. Elena Martínez, a leading expert in social security systems, join us. With Christmas just around the corner, there’s a lot of buzz about the extra pension payments. Dr. Martínez, thanks for being here.
Dr. Martínez: Thank you for having me! It’s a pleasure to discuss such an important topic.
Editor: So, to start, could you explain how the Christmas pension payment system works for our readers who might not be familiar?
Dr. Martínez: Sure! Each year, about ten million citizens, primarily pensioners, receive an extra Christmas installment in their pension payments, which usually arrives at the end of November. This year, while the Social Security Treasury officially schedules these payments for December 1st, many banks tend to advance these payments, ensuring that pensioners have the funds accessible earlier.
Editor: It must be a relief for those pensioners to have that extra financial support just in time for the holidays. But I imagine it adds some strain to the Social Security system?
Dr. Martínez: Absolutely. The pension system already faces significant monthly financial demands. Currently, they allocate almost 13 billion euros each month for pensions. This Christmas payment will indeed increase that burden, as three-quarters of that expenditure is directed towards old-age pensions, which alone take up around 9.4 billion euros.
Editor: That’s quite a staggering amount! Speaking of which, could you break down how the pension spending is distributed among the different types of pensions?
Dr. Martínez: Certainly. Recent data shows that old-age pensions account for approximately 73.1% of total pension payouts. In comparison, pensions for widows represent around 2.1 billion euros, while permanent disability pensions are about 1.145 billion euros. Orphan pensions and benefits for family members comprise a smaller portion, at 171 million euros and 34 million euros, respectively.
Editor: So, with the average pension currently standing at 1,259.6 euros, which reflects a 5.2% increase from the previous year, how significant is this extra Christmas payment for those on a fixed income?
Dr. Martínez: The extra payment can be quite meaningful for pensioners during the holiday season. For many, especially those who rely heavily on their pension, this additional financial support can assist with gift purchasing, holiday meals, or even unexpected expenses. It’s crucial for enhancing their quality of life during what should be a celebratory period.
Editor: It sounds like those extra funds really can make a difference. With that in mind, what advice would you give to pensioners regarding how and when they should expect these payments?
Dr. Martínez: I would recommend that pensioners stay in touch with their bank for the latest information regarding the payment timing, as each financial entity may have different policies concerning the disbursement. Being proactive, asking questions, and understanding their specific bank’s schedule can help them manage their finances effectively during this festive season.
Editor: Great advice! To wrap up, Dr. Martínez, do you see any long-term implications of these Christmas installments on the Social Security system’s sustainability?
Dr. Martínez: That’s an important question. The pressure on Social Security budgets due to increased pension payouts could lead to necessary reforms in the future. This may include policy changes on funding or adjustments to pension benefits. Continuous monitoring and evaluation will be crucial to ensure that we protect these essential services for the aging population.
Editor: Thank you so much for your insights, Dr. Martínez. It’s been enlightening to hear your perspectives on the Christmas pension payments and their broader impact.
Dr. Martínez: Thank you for having me! It’s always great to contribute to important conversations about social security and pensions.
Editor: And thank you to our audience for joining us. Stay tuned for more updates and insights on this vital topic. Happy holidays to everyone!