September has arrived and retirees are already looking ahead to the important changes planned for 2024.
As many people know, pension contributions will adjust according to the Consumer Price Index. If inflation pushed pensions up by 8.5% in 2023, the government again guarantees that retirees will maintain their purchasing power based on the November CPI for 2024.
Additionally, the smallest pensions will see an increase, and the minimum benefits are expected to be tied to 60% of Spain’s average income by 2027.
New date for increase in pensions: Pensioners will be happy
The changes will occur gradually: starting January 2024, the gap between the reference pension amount for retirees with a dependent spouse and the poverty line for a two-person household will rise by 20%.
Experts at BBVA My Pension describe the reference pension amount as something that will be adjusted to support the goal of reducing the current deficit while respecting the 20% reduction target. This perspective helps retirees understand how these figures fit into the broader fiscal picture.
Good news for retirees: This will be your new pension starting from 2024
In practical terms, the monthly minimum pension for a dependent spouse is projected to rise from 966.20 euros to 1,178.50 euros. This marks a 22 percent increase, equating to an extra 212.37 euros each month, or about 2,972 euros spread over a year in 14 payments.