The Reality of Pensions in Andorra
Recently, the Andorran Social Security Fund revealed that, as of October 2024, a total of 4,194 retirees had contributed to the system for at least 35 years. The average pension of these pensioners is 1,468.67 euros per month, but it should be understood that this amount is not homogeneous. The amounts they receive vary considerably, depending on the years of contribution and the points accumulated.
Inequalities in the Pension System
It is alarming that a considerable number of retirees with a long working history are receiving pensions below the minimum wage, which is currently 1,431 euros per month. This situation reflects a systemic injustice that generates a feeling of comparative grievance between those who have contributed for decades and those who access non-contributory pensions.
Comparative Injustices
Unfortunately, those who have made few contributions to the system can access solidarity pensions that equal or even exceed the contributory pensions of individuals who have contributed for 35 or 40 years. This generates a disparity that cannot be ignored, especially when considering that non-contributory pensions can be up to three times higher than contributory pensions.
Proposals for a Fair Solution
In order to correct this inequality, it is proposed to establish a minimum pension for contributory pensions that is equivalent to the minimum wage, similar to that applied to non-contributory pensions. This measure should be conditional on having contributed for a minimum of 40 years and not having opted for early retirement.
A Necessary Commitment
Furthermore, it would be essential for the Government of Andorra to implement a supplement to CASS retirement pensions, which would compensate for the reductions that many insured persons experience due to correction coefficients. This would not only be an act of justice, but also a way of reimbursing the funds that CASS has invested in non-contributory pensions for years.
The Economic and Social Impact of this Change
Implementing these measures should not represent an unsustainable burden on the state budget, with an estimate of around 0.50% of the total. The people most affected by this inequality tend to be low-wage women, who now find themselves with insufficient pensions to meet the cost of living.
The Road to Solidarity
It is time to put an end to the inequalities that have marked the working lives of many people and that continue to affect their lives in retirement. Solidarity must be a fundamental principle in the pension system, both between generations and between those who have contributed significantly.
Actions to be taken
To address this grievance, several actions can be considered: A) Present the issue to representatives in the General Council. B) Initiate a popular legislative initiative. C) Take legal action to assert the rights of pensioners. D) File a complaint with the Citizen’s Ombudsman.