The rationale behind raising the pension is straightforward: it helps retirees stretch their purchasing power while strengthening the long-term viability of the public pension system. The data, however, tell a stark story. Six in ten retirees currently earn less than the minimum interprofessional salary, and the figure climbs to nearly seven in ten among women. This gap highlights the ongoing challenge of ensuring dignified, stable income for retirees and the importance of policy actions that address both adequacy and sustainability.
The joy of retirees: The most anticipated change in pensions
Among the most discussed improvements stands the idea that pension levels will be adjusted to recognize the realities of family life and work history. For households with two earners, the dependent spouse’s minimum contribution is planned to reach 60% of the average income. When considering a non-contributory minimum pension, the target is set at 75% of the individual poverty line, which would lift the pension to roughly 600 euros per month, or about 8,300 euros per year. Such adjustments aim to reduce poverty risk and provide a more secure baseline for retirees, ensuring that the pension reflects actual living costs and household dynamics rather than a flat rate that may leave some retirees short of essential needs.
To make pension adequacy a reality, the timeline outlined for new pension rises maps out a gradual path. The plan envisions increases occurring between 2024 and 2027, with a steady, year-by-year improvement. This progressive approach mirrors recent patterns and is designed to smooth the transition, giving retirees and the system time to adapt while aiming for meaningful gains by the end of the period. Each year several groups of retirees could see incremental boosts, contributing to a more reliable and predictable income stream in retirement.
Discover the secret to guaranteeing 100% of your pension by 2027
Projections from Social Security authorities indicate a trajectory where the minimum pension increases from about 13,500 euros per year in 2023 to around 16,500 euros per year by 2027. While these figures are framed within a specific national context, they illustrate a broader principle: targeted policy measures can materially raise pension adequacy over time. The shift reflects a concerted effort to balance affordability for current workers with protection for retirees, emphasizing a steady climb rather than abrupt jumps. For Canadian and American readers, the takeaway is clear: structured, gradual increases tied to cost-of-living and average wage benchmarks can deliver real gains without destabilizing the retirement system. Keeping an eye on the factors that drive these projections—earnings histories, eligibility rules, and regional cost variations—helps consumers understand how such reforms could affect their own retirement planning in North America.