Retirees are in for welcome news this September as the government announces a substantial pension upgrade that will take effect this month. The change is set to boost monthly income and has implications for many households. Banks may begin posting the larger deposits in the near term as part of the rollout.
The bump will affect nearly 10 million individuals who receive a contribution-based pension. Eligibility depends on contributing a minimum of 15 years, with a maximum of 15 years counted across the working life. In 2023, the qualifying period reached 37 years and 9 months, and this threshold is expected to rise next year to 38 years and 6 months.
Overview of the update is captured under the banner INCREASE IN RETIREMENTS | New date for pension increases: Pensioners stand to gain information.
Social Security authorities aim to ensure a more secure retirement for beneficiaries by advancing a series of legislative steps. The objective is a gradual, multi-year uplift that reaches seventy percent of the average earnings by 2027. The plan outlines successive increases relative to 2023: a 20% rise in 2024, a 30% rise in 2025, a 50% rise in 2026, and a 75% rise in 2027.
Pension changes set to take effect October 1 and impact all retirees
The first phase of this reform begins this September as the General State Budget authorizes an 8.5% increase in contribution-based retirement payments. The result is a noticeably larger pension compared with the previous year.
Pension payments are projected to rise by amounts between approximately 63 and 260 euros per month, depending on the previous August payout. For many retirees, this increase will outpace inflation and provide greater stability in the months ahead. Looking toward 2027, the trajectory suggests further improvements in retirement income, offering deeper financial reassurance.
Social Security disbursements are typically scheduled between the first and the fourth day of each month. Banks may advance the payment by a few days through their own processing practices, usually resulting in deposits appearing around the 22nd to 26th of each month. Recipients should check their bank statements to confirm the exact timing and the enhanced amount of the pension deposit. [Cited: Government financial guidance]
The rollout is underway
As the policy unfolds, retirees can expect more substantial monthly payments that scale with prior benefits. This change is designed to address rising living costs and provide longer-term financial security. The reform is planned to be implemented in stages, with ongoing monitoring to ensure the increases align with macroeconomic conditions and inflation trends. [Statement from fiscal authorities]