In dialogue with Channel E, Christian D’Alessandroa pension lawyer, analyzed the critical situation of pensioners in view of stagnating salaries and the lack of an impending pension reform.
The gap between the minimum and actual cost of living
The pension lawyer warned that a recent study by the Buenos Aires City Ombudsman’s Office clearly demonstrated the discrepancy between the minimum pension and the basic basket that older adults need. As he explained: “A retired couple needs six minimum incomes to survive“, exacerbating a historical scenario of loss of purchasing power.
D’Alessandro He pointed out that despite the critical situation, Congress would not immediately discuss pension reform. He recalled that the Buenos Aires Ministry of Defense basket confirms what has been observed for years: “Retirees are finding it less and less, and that’s worrying.“.
The expert highlighted that almost 80% of pensioners earn the minimum, which exacerbates inequality: “There is a big gap between the minimum pension and the basic needs they need to live“.
Impact of labor reform and decline in sales
When asked whether a possible pension reform could improve the situation in 2025, D’Alessandro It was haunting: “Unfortunately I don’t think so“He explained that the government-sponsored labor reform would reduce employer contributions, which directly affects pension system revenues.
Currently, the employee contribution (11%) and the employer contribution (16%) account for approximately 60% of ANSES revenue. With the proposed cut, he warned: “The collection system will collapse because there will be three fewer points for each worker“.
In addition, there would be a waiver of fines and interest for employers, which would also reduce funding for pension funding. D’Alessandro He stressed that the remaining 40% comes from taxes such as VAT, which may also decrease in the face of an economic downturn: “This invariably represents a bottleneck that ultimately impacts current retirees.“.
Consequences for medicines and subsidies
The lawyer warned of recent decisions such as the reduction in the PAIS tax, which has an impact on the financing of PAMI drugs. He stated that “A large portion of the state tax was intended to finance medications with 100% coverage“, and that his withdrawal will only bring benefits “a handful” of people being able to travel or buy imported products, while millions of retirees lose necessary coverage.
He emphatically remarked: “The question is what we want: for a few to travel to Brazil cheaper or for pensioners to be able to pay for the medicine that saves their lives.“.
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