These are the changes that pensions will undergo in 2024

For 2024, the legal retirement age will increase by two months compared to 2023. For those who have less than 38 years of contributions, they must be 66 years and 6 months to be able to retire. This increase does not affect those who have been contributing for at least 38 years, in this case the age is set at 65 years.

It must be taken into account that since 2013 the minimum age has undergone a temporary increase that will end in 2027, when the ordinary retirement age will be 67 years for those who have contributed less than 38 years and 6 months, and 65 years if A contribution period of 38 years and 6 months or more is accredited.

The latest reform carried out by the previous Minister of Inclusion, Social Security and Migration of Spain, José Luis Escrivá, stipulates that pensions will be revalued based on the CPI. In the last 12 months, inflation has averaged 3.8%, that is the percentage that contributory pensions will increase starting next January 1.

According to Government forecasts, the revaluation of these benefits was expected to be between 3.5 and 4.5%. Well, the drop in inflation during the month of November to 3.2%, three tenths less than in October, according to INE data, has shed light on this data.

These pensions are those offered by Social Security to those people who are in a situation of need and who have not contributed enough or have never done so. For 2024, the General Treasury of Social Security foresees an increase over the amount set for this year. The objective of Imserso is that in 2027 these types of pensions (retirement and disability) reach 75% of the poverty threshold for a household made up of one person living alone.

This measure was approved through Royal Decree-Law 2/2023, of March 16. According to the text published in the BOE “an objective reference indicator is structurally established to mark the future evolution of the amounts of the various modalities with a complement of minimums in order to preserve the objective of sufficiency and poverty reduction.”

The percentage will be based on the figure necessary to reduce by 20% the gap that exists between the minimum amount for a person over 65 years of age with a dependent spouse and the poverty threshold calculated for a household made up of two adults.

The contribution for common contingencies of workers increases by 0.6%, although 0.5% must be paid by the company and 0.1% by the worker. Since January 1, it has risen to 0.7%, with the employer facing 0.58% and the employee facing 0.12%.

This will mean that those with high salaries will be able to contribute for a larger base and, therefore, will be able to receive a higher pension. From January 1, this base will increase like the CPI plus an additional 1.2%, as reported by the public body.