longed for pension reform will finally arrive in 2024 Even though it’s not what we expected. Last March, Royal Decree 2/2023 of 16 March 2023 was approved, which stipulates that pensions will increase annually for a period of four years until 2027, when they will be 75% higher than now. Despite the entry into force of the new Pension Reform, these They won’t increase even half as much as this year. CPI.
According to this text, it will increase by 20 percent in 2024 compared to 2023, 30 percent in 2025, 50 percent in 2026 and finally 75 percent in 2027. Additionally, these supports will be revalued according to November CPI data. According to the minister’s law José Luis EscrivaAccording to 2023 inflation data, pensions will increase centrally. Since it is not known what will happen in November, this figure is half of last year. The political situation in the country does not make it clear that this increase will be made immediately.
In 2023, General budgets of the state (P.G.E.) They collected an 8.5% increase in the minimum and maximum amounts of pensions. The incumbent Government has neither approved the extension nor announced the new PGE. This revaluation has not been confirmed.
The decline in inflation leaves a new scenario
Social Security Due to inflation, pensions are expected to increase by around 4 percent. According to preliminary developments, the data to be announced in December show a clear improvement in the indicator that measures the living standards and purchasing power of Spaniards according to their consumption habits. The rate of 8.5% in 2022 has clearly been reduced due to the stabilization of product prices.
This data will bring about a series of economic decisions like this, so that, except for a last-minute surprise, the above-mentioned 4% rate will not change much. Forecasts say that average pensions in 2024 will be as follows:
- Pension: 1,361.36 euros
- Permanent disability: 1,150.24 euros
- Widowhood: 848.64 euros
- Orphanhood: 480.48 euros
- Family kindness: 690.56 euros
New Pension Law
The government estimates that after reforming the system, average spending on pensions will remain at the same level as GDP. 12.4% between 2024 and 2050. The target is to protect minimum pensions equal to 60% of the minimum income for a typical family of two adults. Retirees are looking forward to 2024 to finally find out what income will enable them to survive on a monthly basis and cover all their expenses.