Retirees receiving the minimum salary have experienced a significant loss in purchasing power, according to a report from the IARAF. Those receiving three minimum salaries also saw a 44% loss in their average monthly salary. The report shows that retirees collected $276,913 in June 2021, down 25% from the average monthly amount of $370,009 in 2017 when adjusted for inflation.
Inflation has reached 71.9% to May and is expected to increase in June and July, putting retirees at risk of falling even further behind in real assets compared to 2017 levels. Nadin Argañaraz from the IARAF emphasizes the importance of addressing compensatory bonuses to prevent further loss in purchasing power.
The Chamber of Deputies approved a project to improve real assets by 7.2%, but President has expressed concerns about jeopardizing fiscal balance. It is crucial for Congress to enact changes that guarantee spending increases do not have a negative impact on fiscal results while ensuring retirees can maintain a decent standard of living.