The aches and pains of retiring in Argentina

Let´s face it. If you are like about 75% of Argentines you collect around $900 pesos per month. That might pay your utilities and the cost of maintaining your apartment in Buenos Aires. But not much more. So you naturally would like to get the 82% of your last salary, or around $1,200, that the "opposition" wants  to entitle you to take home with your monthly retirement check.

The strange thing is that while countries in Europe--staggering under the financial crisis set off by speculative  capitalism--are talking about increasing the age for retirement and  other schemes to make the retired foot part of the bill for the economic debacle...rightwing and other opposition groups in Argentina are pushing for increasing retirement benefits--without explaining how to finance the more generous checks.

Perhaps it is not that odd. During the financial and social "melt down" in Argentina following 2001, some of the same politicians who are now demanding increases for the retired grabbed retirement money to help deal with an enormous financial crisis caused especially by the country's escalating foreign debt. And by the "advice" of the International Monetary Fund. Then and now the IMF "advised" on the pocket gauging of the retired.

The opposition in Argentina appears to be united mainly in its dislike and distrust of the Peronist government led by President Cristina Kirschner, but it includes traditional rightwing, free market fans of varios tones, and even sectors of the divided socialist party and other left of center groups. 

If the rightwing were to get into power they most certainly would bite into retirement in order to pay the foreign debt or make investing in the country more attractive to multinational corporations. But they carefully avoid mentioning that.

What the opposition wants--aside from their alleged defense of the retired worker--is to take funds away from the government and thus make it difficult for them to rule. That would appear to be the explanation for not stipulating where the additional funds would come from to pay for the increase in retirement benefits. For example, they say that money provided to help poor mothers feed their children is squandered and that those funds are mainly used to get votes for the government party. Yet this policy has led to an important increase in the drop out rate of children from public schools.

The rightwing is also upset because the government re-nationalized the retirement system in the country, taking away the lucrative private retirement business from financial institutions. The State retirement entity, ANSES, has stacked up a significant surplus cash of around 3.8 billion pesos. However, to pay the increased benefits demanded by the opposition would suppose some $22 billion, according to government sources. Where would the difference come from?

What neither the opposition nor the government mentions is the continued existence of extremely high retirement benefits for upper income groups, retired military officers, politicians and others.

Although corruption is certainly an issue in the country, what the opposition really wants is a return to "neo-liberal" economic policy. In word, that would mean shrinking the state to an absolute minimum and giving tax reductions and other benefits to the rich and to foreign investors. If in power, they certainly would also attempt to hand the retirement system over to banks and other financial institutions.