The average retirement pension is located in Navarre at 1,540.22 euros. It is an increase of 120.66 euros compared to last year, after the revaluation of 8.5% according to the formula established in Law 20/2021 on the guarantee of the purchasing power of pensions approved by the Government of Spain. The increase is 283.92 euros compared to 2018 (22.6 percent), when the average retirement was 1,256.30 euros. These are data from the Ministry of Inclusion, Social Security and Migration.
The 8.5 percent revaluation benefits the 142,045 Navarreans who receive a contributory pension. Most of them, 97,302, correspond to retirement pensions.
The government delegate recalls that, if the reform of the previous executive, which anticipated an increase of 0.25 percent, had been maintained, the increase in the average retirement pension in the Foral Community would have been 3.17 euros this year and 15.78 euros since 2018.
José Luis Arasti highlights the commitment of the central government to the revaluation of pensions, which is a guarantee of purchasing power and “an intrinsic part of the right to a public pension”. The government delegate pointed out that “despite the pressures, it is an unwavering commitment of this government, an expression of solidarity with those who have contributed and deserve protection commensurate with their efforts.”
The cost of the revaluation to 8.5% is 13,600 million euros for the whole of 2023. If you add the 15% increase in non-contributory pensions and the Minimum Vital Income, this figure amounts to 14.5 billion euros.
Provide certainty in uncertain times
The government delegate stresses that the revaluation of pensions brings certainty to pensioners at a time of high inflation and great international uncertainty due to the war in Ukraine because their purchasing power is guaranteed. “With the People’s Party formula, the increase would have been a meagre 0.25%, 48 euros per year on average compared to the current more than 1,500, which would have meant a strong loss of resources for pensioners,” says Arasti.
It also considers that the current reform is positive for everyone: current pensioners maintain their purchasing power, and future pensioners have confidence that their pensions will be backed by a strong system that guarantees income protected from price rises. “This reinforces social cohesion and the principle of solidarity between generations,” says the government delegate.
A measure compatible with the sanitation of the system
José Luis Arasti stresses that “thanks to this Government of Spain, the maintenance of purchasing power is now an unbreakable right of pensioners”. It also recalls that the revaluation has the maximum social and political legitimacy, following the recommendations of the Toledo Pact and the great agreement with the social partners of 2021.
In addition, it ensures that it is compatible with the strengthening of the accounts of the Public Pension System, since the measures of protection and improvement of the quality of employment promoted, among other actions, by the labor reform are improving income and moving towards budgetary balance. In fact, this year a record income is forecast for social contributions, which will amount to 10.9% of the total GDP. The Social Security deficit, which in 2018 was 1.6 percent of the Gross Domestic Product this year, is expected to end at around 0.5%.