Pension spending in the region keeps rising, with new records set month after month. This trend comes from more beneficiaries and higher benefit amounts, though the figures still sit below the national average. Local authorities report that Social Security payroll in Alicante reached a new high this September, topping 347 million euros for the month — a leap of 11.4% from a year earlier.
The increase outpaced national levels, and the copayment bill also climbed by 10.9%, hitting a monthly record of 12,051 million.
Two main factors drive this trajectory. First, there is a notable rise in the number of pensions in the province, which has reached 335,562. That’s 5,615 more than twelve months ago. The growth mirrors demographic shifts, including a growing number of retirees as baby boom generations reach retirement age and longer lifespans, which means retirees collect benefits for more years.
Second, total expenditures grew as benefit amounts rose. The province’s average pension across all categories now stands at 1,035 euros per month, up 9.5% from August 2022, aligned with CPI revaluations. This follows the government’s decision to adjust pensions in line with inflation, despite some months showing higher new benefits.
Even with gains, Alicante’s retirees, particularly among the Hispanic community, still earn about 13.4% less than the regional average. That translates to roughly 160 euros less per month on average.
Approximately 8,800 Alicante retirees earn more than 3,000 euros per month
Pensions by type show the top average in Alicante for general pensions at 1,174 euros per month; permanent disability pensions average 1,016 euros; widow pensions average 769; family-support pensions average 668; and orphan pensions average 422 euros per month.
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This sharp rise in pensions has contributed to a widening deficit in the Social Security system in the province, despite strong employment performance that boosted tax and contribution collection. In the first seven months of the year, the public institution collected up to 1,734 million euros, driven largely by payroll withholdings and self-employed payments, a 162 million increase over the same period in 2022.
Total Social Security expenditure in the region reached 3.020 million euros, up 309 million from January to July of the previous year. The budget deficit expanded by 147 million compared to a year ago, topping 1.286 billion euros.
UGT’s general secretary in l’Alacantí i la Marina defends the public pension system and supports a reform agreed with the government and unions, which includes increasing the maximum contribution and introducing a solidarity quota for higher earners. [Cited: local union statements, 2024]
Meanwhile, CC OO’s general secretary in the same region acknowledges concern over the numbers but argues pensions should be linked to CPI to preserve retirees’ purchasing power. He notes that workers must still have the option to save for private plans, given current salary levels. He calls for calm discussions and notes that a large portion of pensions should not be redirected entirely to the General State Budget. [Cited: regional labor talks, 2024]
An Alicante man had the Supreme Court recognize his right to forgo retirement to continue contributing and receive a higher amount
Some experts, including a GNA labor law professor, remain skeptical. Pedro Pablo Ortuno argues that the measures taken so far to control the Social Security shortfall have failed and warns the current system may not be sustainable. He recalls that the system was designed when the population pyramid looked different and the ratio of workers to retirees was higher. Ortuno stresses concerns about financing pensions through the budget, which could divert resources from other public services.