News that creates expectations among millions of people retireesHE Pension system in Spain A significant increase is expected in 2024. Minimum pensions are expected to rise, a vital issue for the well-being of many Above the Consumer Price Index (CPI)according to the second pension reform. This increase is part of a strategy to reduce the gap between the highest and lowest pensions and is expected to have a positive impact on beneficiaries’ quality of life.
Minimum pension and increase above CPI
Minimum pensions pension and widowhood will receive a significant financial boost, with an increase to exceed 3.8 percent CPI. This regulation would allow pensions with Social Security contributions to increase by 3.8% starting in January 2024. This change applies specifically to pensions from a dependent spouse; this figure will increase from 13,527 euros per year in 2023 to 14,453 euros in 2024; A significant monthly increase.
Forecast to 2027: More equality in pensions
Looking ahead, the forecast until 2027 is even more encouraging. It is planned that the pension with minimum premium contribution will continue to increase above the CPIIn 2027, it will reach 16,500 euros per year (1,178.5 euros per month), an increase of 22% compared to 2023. This effort is part of a comprehensive plan to guarantee greater equity in the retirement system.
Impact on non-contributory retirement
It’s no less important increase non-contributory retirementThere will be an increase above the CPI. These pensions for the most vulnerable groups are planned to be increased to close to 75% of the poverty line for single-person households by 2027. Numerically, this means that the entire pension or disability pension will increase by 6.76% in 2024, from 6,784.54 euros to 7,243.58 euros.
These improvements to the pension system constitute positive news for the 10.08 million retirees in Spain. With these increases, retirees will be able to look to the future with more optimism and financial confidence.