Three formulas on the table for the lowest retirement pension
As the end of the year approaches, three alternatives are being evaluated to improve the lowest retirement pension: linking it to the minimum wage, a flat-rate increase, and restructuring the base pension system.
With the approach of the end of the year, efforts regarding potential improvements to the lowest retirement pension have gained momentum. In this process aimed at increasing purchasing power, tying it to the minimum wage, a flat-rate increase, and re-evaluating the base pension system stand out as three different formulas on the table.
Minimum Wage Link
The first formula envisages establishing a direct link between the lowest retirement pension and the net minimum wage. According to this model, the baseline pension will be determined based on the income level of workers.
Flat-Rate Increase and Welfare Share
The second formula covers making additional payments to millions of citizens receiving pensions at the lowest level, independently of inflation increases. This model, which can be implemented in the form of a flat-rate raise and a welfare share, aims to directly increase incomes.
Re-evaluating the Base Pension System
The third and more comprehensive option involves re-evaluating base pensions. With this method, instead of raising the baseline pension solely through Treasury support, the goal is to increase the retiree's actual pension.