A new record is being reported for retirement spending in Alicante. This January, Social Security allocated 342 million euros to pay the 332,000 contributors active in the province. The amount marks an 11.3% rise from the same month a year earlier, according to data released by the public agency this Tuesday. Experts note that this sizable injection supports the local economy and helps sustain consumer activity, adding a practical dimension to debates about the system’s long-term sustainability.
This uptick in the Alicante pension payroll, outpacing the national increase of 10.7%, reflects both higher average payments and the broader rise in benefits. Following a government decision to revalue benefits by 8.5%, the average pension in the province rose to 9.74% above prior levels, with the signal shift pushing the monthly average beyond the 1,000-euro mark for the first time, reaching 1,029.06 euros.
It is a notable advance, but it does not erase gaps with the rest of the country. Alicante retirees still earn about 13.5% less than the national average, a discrepancy roughly equivalent to 160 euros per month. By regional comparison, Álava remains the highest, with an average pension of 1,498 euros, while Ourense residents receive around 880 euros on average.
Ignacio Jiménez Raneda, an economist and emeritus professor at the University of Alicante, notes that these figures mirror ongoing wage and income disparities across regions. Pensions carry a redistributive component, shaped by both minimum and maximum pension levels and by the economic structure that dominates each area.
In Alicante, the allocation of benefits is influenced by the presence of multi-season sectors such as tourism, nougat production, and footwear, where many workers do not have year-round employment. In contrast, industries with higher wages, like new technologies, have a limited economic footprint in the area, which helps explain why overall income remains comparatively lower. This dynamic, in turn, influences the public purse when people reach retirement, a point unions consistently emphasize in calls for reform.
This is how the number of retirees in Alicante is growing: there are more every day
Among the province’s pensioners, 27.1% receive the minimum pension or the supplementary amount Social Security pays when results fall short of the legally defined minimum. In the case of women, the share is higher, reaching 32.7%.
by genre
The average pension by category sits at 1,166 euros in the province. Following are permanent disability benefits at 1,015 euros; widowhood payments at 767 euros; family benefits at 670 euros; and orphanhood allowances at 420 euros.
Alongside the rise in average payments, the overall pension payroll in Alicante also grew due to the increased number of Social Security benefits paid this January, totaling 332,539. Over a year, the number rose by 4,786, a 1.46% increase that outpaced the national uptick of 0.88%.
A supplementary payment option tied to pensions for recipients with children
Jiménez Raneda stresses the significant economic boost that pensions provide to the local economy, highlighting that improvements in pensions help sustain and increase consumption. In the region, households with children allocate a larger share of their income to direct expenditures compared with higher-income groups who save more.
If current trends continue, supplementary pensions could contribute around 4.8 billion euros to the provincial economy this year, potentially marking a new peak.
A pending reform of the agreement among government partners
With the revaluation framework adjusted, the Government is awaiting the second phase of pension reform promised in exchange for bailout funds. The reform aims to improve long-term system sustainability and has sparked political contention within the coalition. The minister for Inclusion and Social Security has proposed extending the calculation base from 25 to 30 years and discarding the worst two years; this approach faced explicit opposition from a party within the coalition, which signaled a potential benefit cut for some. The minister contends that about 30% of future retirees would benefit, and the number affected would be smaller.
Current data show that in Alicante the ratio of active workers per retiree stands at 2.36%, a level above that required for theoretical sustainability. The challenge will intensify as the baby-boom generation reaches retirement in coming years.