You’re in luck this month because welcome news is here for retirees and pensioners. The government has announced changes that will be put into effect soon, bringing a meaningful rise in monthly income and a smoother path to bank deposits.
The increase will benefit nearly 10 million people collecting contribution-based pensions. This improvement comes from earning at least 15 years toward pension eligibility, with a maximum of 15 years counted over a working life. In 2023 the threshold stood at 37 years 9 months and will rise starting next year to 38 years 6 months.
INCREASE IN RETIREMENTS | New date for pension increases: Retirees receive better information
Social Security aims to provide a decent pension and is backing a series of laws so beneficiaries receive more money. The program’s goal is to reach 70 percent by 2027 through a gradual ramp up, with scheduled increases announced as follows:
- They will rise by 20 percent in 2024 versus 2023
- They will rise by 30 percent in 2025 versus 2023
- They will rise by 50 percent in 2026 versus 2023
- They will rise by 75 percent in 2027 versus 2023
Pension changes set for October 1 will affect all retirees, marking a new phase in retirement income.
Pension reform has begun, and the first step of this evolution is taking place in September. The General State Budget approved a generous 8.5 percent increase in contribution-based retirement amounts, leading to higher pension payments compared with the previous year.
Pensions will rise by amounts between 63 and 260 euros per month, depending on the pension received in August. This increase is larger than prior payments and aims to help retirees cope with current inflation. Looking ahead to 2027, the increases are expected to be even larger, offering retirees greater financial security.
Social Security typically pays pensions between the 1st and 4th of each month. Banks often provide the deposit a few days early to ease the monthly cash flow. The exact date varies by banking institution, but most commonly falls between the 22nd and 26th of each month. Those affected should check their bank account to confirm the receipt and any accompanying increase.