Our country is characterized by successes: We have a Pope, we are world soccer champions, we have 5 Nobel Prize winners, but what regarding retirement?
This week the National State and our representatives gave rise to nearly dand 800,000 people, many of which worked all or part of their lives, in informal conditions and without making contributions to the pension system, have the right to a pension, in the same way that anyone who worked in the formal circuit has it, and contributed 11% of their salary for more than 25 years.
The minimum pension does not reach 160 blue dollars and is almost the lowest in the region
This generates a Déjà Vu like so many others in our country, at times when this same political sign administered the Nation. In a quick memory, in 2003 retirement and pensions totaled around 3 million people, in 2015 they were close to 7,000,000 and now there will be a new increase.
This new benefit allows those who take it, to collect retirement and with that same charge make the contributions, which they should have made during their active working life; that is what is called retire solutions with moratoriums, the possibility of paying today, what was not paid before.
This, which can be identified as an improvement in the quality of life of 800,000 people, has as a counterpart the lack of resources of the National State to meet this new expense.
At the same time, the number of workers within the formal system did not have a significant increase, which consequently translates into more deficit, since all the systems known as “pay-as-you-go systems” have the same logic: Those who contribute a part of their salary are the ones who generate the income to pay those who have already retired.
The main points of the new pension debt payment law approved in Deputies
Currently the minimum retirement in Argentina represents regarding $200 (blue), an amount similar to what they received at the end of the 90s retirees marched every Wednesday asking for increases, because just like today, the amount does not allow them to live with dignity.
Do retirees in the rest of Latin America suffer the same fate?
Is it the lowest pension in the region? The answer is no, but Brazil, our most important business partner, has a minimum retirement of USD250.
Bolivia reaches levels of USD300 and Uruguay much higher levels above USD 450 and although we can consider that in each country the cost of living is different we cannot deny that USD200 is not enough for one month’s expenses and once once more, people who should be in a situation of joy (that’s why it’s called retirement) unfortunately often have to live working, begging or receiving help from their relatives.
Start the path of investments so as not to reach retirement “without rest”
In order not to give a closure to this reflection that is not encouraging, I call the attention of all readers, so that start the investment pathso that they can form a retirement for themselves, so that they can ensure their future, even with discrete amounts but taking advantage of the time they have and that today plays their favor, approaching the stock market and being able to invest in Argentina or of course For those who do not trust the country, I invite you to analyze the possibility of investing in the US, breaking the paradigm of why one needs to be a millionaire to take this step and take control of their future today.
take care of your money
* Graduated in Business Administration and certified as a Financial Advisor since 2018. I am also registered with the National Securities Commission (CNV) as Suitable under number 1179.
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