Since the beginning of the year, pensions have experienced a 8.5% increase, although the difference between the amount between the minimum and maximum pension varies according to the beneficiaries. This increase in this financial benefit was contemplated in the State’s general budgets. Non-contributory pensions, granted by the Impressed in collaboration with the autonomous communities, they have also increased by 15%, as has the Minimum Vital Income.
The main objective of the Government of this revaluation, at the request of the Ministry of Inclusion, Social Security and Migrations, was prevent pensioners from losing purchasing power and update the pension system by 2023. It is important to take into account that inflation affects the pocket of all Spaniards, since in August 2022 a historical milestone was reached with a rate of more than 10%, mainly due to the high electricity and fuel prices.
In Spain there are more than 10 million pensioners, regardless of the type of pension they receive. The Government already has scheduled the next increase in pensions.
When will pensioners’ pensions go up?
It has been established a period of four years, from 2024 to 2027, for the next increase in pensionswith the aim of improving the purchasing power of pensioners and guaranteeing the sustainability of the public pension system.
In addition, the Government has determined that the minimum contributory pension for those with a dependent spouse, it is equivalent to 60% of median income from a household with two adults and that the minimum non-contributory pension reaches 75% of the individual poverty linewhich will mean an increase of up to 592 euros per month.
It is expected that by 2027all minimum contributory pensions represent 60% of average income, which will be carried out gradually from 2024 to ensure that no pension falls below the poverty line in that year.
The margin to fill the gap between the amount of the retirement contributory pension For those pensioners with a dependent spouse, it will be calculated as follows:
- As of January 1, 2024: the amount will be increased based on the percentage necessary to reduce the existing gap by 20%.
- As of January 1, 2025: the amount will be increased based on the percentage necessary to reduce the existing gap by 30%.
- As of January 1, 2026: the amount will be increased based on the percentage necessary to reduce the existing gap by 50%.
- As of January 1, 2027: will increase to reach the estimated poverty threshold for a two-adult household.