Retirement pensions increase social security spending by 11%

The total amount spent on social security benefits in the first nine months this year was €623.7 million, a €62.5 million rise when compared to the corresponding figure in 2012.

Contributory benefits' expenditure increased by €41.8 million and non-contributory benefits by €20.7 million. The 9.7 per cent rise in contributory benefits was due to a €38.9 million increase in retirement pensions, resulting from a €39.8 million rise in two-thirds pension.

This increase in expenditure is associated with an extra payment, amounting to €27.3 million, which was given to retired pensioners in the first nine months of 2013, together with a rise in the number of retirement beneficiaries. Further significant growths were also recorded for Contributory Bonus (+€5.5 million) and Other Benefits (+€1.1 million). On the other hand, Pensions in respect of Widowhood decreased by €4.0 million.

Non-Contributory Benefits spending totalled €152.5 million for the first nine months, a 15.7 per cent increase over the corresponding period in 2012. This rise in expenditure was largely due to a €9.3 million increase in Children's Allowance and an €8.2 million increase in social assistance.

Furthermore, there were increases for Supplementary Assistance (+€1.8 million), Old Age Pension (+€1.0 million), Disability Pension/Allowance (+€0.8 million) and Non-Contributory Bonus (+€0.7 million). Medical Assistance (-€1.0 million) recorded a decline.

In the third quarter, social security benefits amounted to €218.1 million. Both Contributory and Non-Contributory Benefits registered an increase in outlay, compared to the equivalent period in 2012, by €32.9 million and €14.5 million respectively.