Social Security needs US $ 6,400 million more transfers from taxes that a year ago. The financial contribution of the system already represents 25% of the system’s income.
Only in the first nine months of 2025, Social Security has already needed a total of US $ 46.9 billion from taxes to cover pension spending. The item of state transfers gains weight in the system of income of the system and already constitutes the second fundamental pillar, After the collection of social contributions, to sustain the monthly disbursement of contributory benefits -especially the more than 10 million pensions that perceive the more than 9 million beneficiaries of the system.
The figure is significant because it accounts for how despite the improvements of employment that registers social security in terms of affiliations, these are far away to cover with their contributions the payment obligations. The US $ 46.9 billion transferred is US $ 6,400 million more than those required by the system in the first nine months of last year (an increase of 16.2%).
With this rhythm of increasing extra financing, from general tax collection, it is already taken for granted that the system will require more than US $ 58,000 million to support the cost of pensions, which will be around US $ 253,000 million in the whole year.
This transfer is equally fundamental to maintain the budget balance of social security. If this injection does not count the system would show a remarkable deficit. Specifically, in terms accumulated until August, a surplus is recorded in the US $ 7,000 million accounts. Result of the difference between income that reaches US $ 159,169 million and expenses of US $ 165,110 million.
Until August, this share had raised a total of US $ 4,037 million. The rest, just over US $ 46,900, are the transfer, 25% of the entire remnant available for the payment of pensions. Adding to this party the funds of the equity mechanism, the contributory deficit already exceeds US $ 42,000 million euros.
In any case, this trend will continue to rise as long as the last pension reform does not foresee reductions in pension and trust to increase income the ability to cover expense obligations. According to Airef, in order to deal with the growing disbursement essentially led by the revaluation of pensions with the CPI, they will be necessary to transfer about US $ 96,000 million annually in 2050 -by the value of 5.5 points of GDP.
Labor casualties cost 25% more than budgeted
Another relevant element of analysis that yields the budgetary execution of Social Security is the growth of the necessary financing to cover temporary disability benefits. This, the increase in the economic cost of labor casualties for the system. Until August, a total of 11,742 million euros have been allocated to this chapter, which represents 2.6% more than in the same period of last year. This means that in nine months the entire budget consigned for the coverage of temporal disability (11,764 million) has been consumed.
Although, we must bear in mind that this budget architecture does not attend to the growing reality of the problem of work casualties when treated of the extended accounts of 2023. That is why the Government has been forced to divert US $ 5,031 million, 25% more than budgeted, to increase consignment to US $ 18,795 million.
