The pension situation for Alicante’s retirees remains well below the national average. Even though the government revalued benefits using the consumer price index, the update did not close the gap, and the disparities between Alicante’s retirees and those in other regions persist. What stands out is the persistent delta in earnings among new beneficiaries, which remains wider than before.
In April, the basic monthly pension in the city reached €1,032, an increase of €91 from the prior year, yet it fell €161 short of the national average of €1,193.1. In other words, Alicante retirees receive about 13.4 percent less than their counterparts in the rest of the country.
Differences are even more pronounced when considering pensions alone. Pension payments make up roughly two-thirds of total benefits in the province. The average pension in Alicante is €1,170.8, up €104 from a year earlier, but it remains far from the national average of €1,372.98. That gap translates to about €202, or 14.7 percent, behind the rest of the country.
This is no small issue, especially since retirees are the breadwinners in nearly one in four households in the province, according to the latest EPA data. About 23.6 percent of households are led by retirees, so the amount of benefits directly affects local consumption and activity in the region.
The situation becomes more alarming when looking at a decade-long trend: average benefits have grown slowly, while the gap between Alicante retirees and those in other parts of the country has widened. This suggests a widening distance between regional retirees and the national average in the future.
Thus, the latest data show that the average benefit for those who most recently retired in Alicante in March was €1,175, about €265 less than the national average of €1,440, representing an 18.4 percent shortfall.
Tell me where you live in Alicante and I’ll tell you how much pension you get.
As Miguel Hernández de Elche professor of Business Law at the University notes, the pension picture reflects low wage levels and a significant underground economy. Two key factors drive this situation: unemployment benefits for regional workers and the level of social protections to which they are entitled, both of which influence future retirement benefits.
In addition to the heavy weight of sectors such as agriculture and small local businesses, salaries in Alicante tend to be lower. The reality is that the manager of a national Ibex company does not earn the same as the manager of a local shoe workshop, highlighting the regional salary squeeze and its impact on pensions.
Salaries for people in Alicante are among the lowest in the country.
Self-employment also plays a role. Many self-employed workers bid for the minimum base salary, a condition that persisted even after policy changes in January. This means that pensions linked to the general regime remain lower. The average pension for a retiree under the general regime nationwide is about €1,290, while self-employed retirees see roughly €873, a gap of about 32 percent.
A persistent gender gap also remains. The average pension for women is around €850, roughly 31 percent less than men’s averages.
Nearly 5,000 more retirees than a year ago
According to the latest SSI data, the number of retirees in the province rose by 4,885 over the last year, reaching 333,614. Of these, 215,633 receive pensions, while 81,221 are widow’s pensions with an average of €768. There are 23,070 permanent disability pensions, 12,442 orphan’s pensions, and 1,248 pensions in favor of family members.