Retirees face a new increase in their pensions to compensate for the evolution of prices over the last year. As indicated by the Law, the purchasing power of this group is shielded and conditioned to annual inflation after the 2021 pension reform. In the absence of knowing the Consumer Price Index (CPI) for November and relying on the forecast According to experts, the revaluation of contributory pensions will approach 3% in 2025. It will entail an increase in the Social Security bill of about 5,000 million in a new year that cwill contemplate pensions above 3,200 euros (almost 48,000 annually) per month for the first time in history.
Pensioners will know the final revaluation in mid-December, when the National Institute of Statistics (INE) confirms the final inflation rate for the month of November. Once this information is known, Social Security calculates the average inflation of the previous twelve months (from December 2023 to November 2024, in this case) to establish the increase that contributory pension recipients will generally receive.
The evolution of prices until October, added to the forecast of the economic studies service of the Savings Banks Foundation (Funcas), indicates that the average inflation of the previous 12 months is 2.94%. This preliminary data is, predictably, very close to the definitive data that will serve as a reference for In December the Government will announce the increase that will benefit the more than nine million pensioners that there is in Spain.
How much will my pension increase?
What will this improvement in benefits translate into? Each pocket will notice it in a different way. It is as simple as applying the following operation: multiply your pension by 2.9 and divide by 100. The result will be the approximate increase that you will see starting in January. If we take as a reference the current average pension of the entire system (1,259.6 euros per month, according to the latest data published by the National Social Security Institute), The increase will be around 38 euros gross per month on average.
The average retirement benefit, which reaches 1,447.4 euros per month and covers the majority of benefit beneficiaries, will rise by just over 42 euros under these assumptions. That of permanent disability, now at 1,164.78 gross euros/month, will rise to almost 34 euros. The widow’s pension, now at 898 gross euros/month, will rise to 27 euros/month. Orphanhood, now at 503 gross euros/month, will rise to 14 euros/month. The one granted in favor of family members, on average at 744 gross euros/month, will be granted at 22 euros/month.
The pensioners who are part of the general regime are former employees. They are, consequently, the bulk of pensions (7.6 million) and monthly expenses (10,475 million) paid by Social Security. Your average pension of 1,373 will be updated to exceed 1,400 euros.
The self-employed are the second largest group, with practically 2 million pensions and an expense of 1,733 million euros. Your benefit will be below 900 euros gross per month even after the update with the planned CPI.
The pensions of civil servants are located in the extinct Passive Classes regime, which includes military personnel and civilian personnel of the General Administration of the State, the Administration of Justice, the General Courts and other bodies, as well as officials transferred to the autonomous communities. Their payments are around 2,250 euros gross/month and they will see an increase of 67.5 euros/month.
Maximum pension: 45,800 euros per year
The latest pension reform, approved in 2023 with José Luis Escrivá as minister, established a new formula to update the maximum pension that retirees can collect. Specifically, this limit increases according to the same variation in inflation that is used to update all benefits (twelve previous months, from December to November of the current year) plus an additional surcharge of 0.115 points. Under this scenario, the maximum pension will rise by just over 3% and proposes pensions close to 3,300 euros per month, 45,800 euros per year that Social Security will pay for the first time in history.
There are several formulas to calculate the cost of revaluation. The Government calculated for the current 2024 increase that the annual disbursement derived from this update is 7,300 million, 1,920 for each point that inflation increases. The Bank of Spain, for its part, establishes that the cost of the revaluation is 1,800 million for each point that the payments are updated. In any case, Both forecasts indicate that the annual bill will increase more than 5,000 million due to this revaluation.
Protection of the vulnerable
Outside of these calculations are the lowest system performance that serve as a social protection fabric for the most vulnerable: minimum pensions, the Minimum Living Income (IMV), non-contributory benefits… these payments will rise more than inflation with the aim of equating them to the minimum poverty threshold in 2027 In 2025 the objective will be to reduce by 30% the gap between the amount of the minimum retirement pension and that 100% poverty line.
As of 2027 then, the minimum amount of the contributory retirement pension for a holder over 65 years of age with a dependent spouse may not be lower than the poverty line calculated for a household made up of two adults, BBVA Pensiones reports.
“In January 2026, the amount of the minimum retirement pensions will be additionally increased by the percentage necessary to reduce the existing gap by 50%. Finally, in 2027 the reference amount of the pension will be increased additionally, if necessary , until reaching the poverty threshold calculated for a household of two adults. The minimum widow’s pensions will increase between 1,775 and 3,800 euros annually in four years (between 2024 and 2027), bringing them into line with the minimum contributory retirement pensions,” the report states. specialized portal of the bank.
The case that addresses the non-contributory pensions and the IMV: these payments, collected by law, will rise until they equal 75% of the poverty threshold calculated for a single-person household on the same date in 2027, until reaching almost 8,300 euros per year (592 euros per month) in 2027 with an estimate of increase in 4 years (between 2024 and 2027) of 22%.
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