The final inflation data for November (+2.4%) published today by the INE confirm that in 2025 contributory pensions will be revalued by 2.8%, as this is the average of the increases in the CPI in the preceding twelve months .
It must be remembered that since the pension reform undertaken in 2021 by the then minister and now governor of the Bank of Spain, José Luis Escrivá, the offset between the price boom and pensions is calculated in December based on data from the previous year and with a view to being effective in January.
For those who have an average retirement pension, this revaluation will translate into a ‘extra’ of 600 euros a yearwhile the system’s average pensions will increase by around 500 euros per year. In other words, a pensioner who receives a pension of 1,441 euros per month, which is the average of what retirees receive in Spain, will receive 1,481.35 euros.
In monthly terms, the average retirement pension will increase by 40 euros per month; that of permanent disability, at 32 euros (448 per year); widowhood in 25 (350 per year); that of orphanhood, in 14 (196 euros per year); and the ‘in favor of relatives’ at 20 euros.
According to Social Security data, this increase will benefit the nearly 9.3 million people who receive 10.3 million contributory pensions, in addition to the 720,148 pensions corresponding to the State Passive Classes Regime, which will also be revalued with the same index.
Social Security debt worsens
As ABC already explained, the Bank of Spain estimates that the total bill for this update for Social Security will exceed 5,000 million euros, which will aggravate the debt of this public body, which by requesting loans from the General Treasury of the Social Security to pay pensions already owes around 116,000 million euros.
In this context, the skyrocketing inflation of recent years and the consequent revaluations of pensions have only aggravated this debt, which has doubled in the last four years alone. Of course, we must remember, for example, that in January of this year contributory pensions were revalued by 3.8% and in 2023 they were revalued by 8.5%.
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