The year 2024 is set to bring notable changes for pensions, following a reform endorsed by the former Minister of Social Security, now serving in digital governance. José Luis Escrivá outlined how the reform translates into higher pension values by reflecting the Consumer Price Index and applying the corresponding adjustment percentages. Elma Saiz also confirmed that this year’s increases will be implemented in line with the new framework aimed at sustaining pension growth while preserving purchasing power for retirees.
Escrivá described the core objective of the new Pensions Law as ensuring the long-term sustainability of the public pension system and maintaining a fair balance between contributions and benefits. The goal is to provide a stable, reasonable monthly income to everyone receiving a pension, ensuring retirees have dependable support over time.
How will pensions increase in 2024?
The scheduled annual increase starts next year and will continue through 2027, ultimately aiming to raise pension values to at least 70 percent higher than 2023 levels. Compared with the current year, the plan foresees a 20 percent rise in 2024, followed by a 10 percent increase in 2025, and a 20 percent uplift in 2026, with further adjustments as needed through 2027. This gradual path targets both the pension amount and the risk of poverty, recognizing the need for steady growth over several years.
On the other hand, pensions tied to contributions will see a 3.8 percent increase driven by CPI, while the minimum income for those not paying premiums will rise by 6.9 percent. The widow’s pension and related allowances are expected to grow significantly, by about 14 percent, reflecting broader efforts to strengthen household financial security for survivors.
Monthly expenditures show the state allocating €12,100.8 million to pensions, representing about 11.5 percent of Spain’s GDP. Escrivá highlighted that, due to the 2021 pension reform and broad parliamentary support, the government has consistently protected retirees’ purchasing power for a third consecutive year, a point echoed in a video shared by Elma Saiz. The overall aim remains to shore up living standards for retirees while maintaining fiscal balance.
This will be the minimum pension
A legally defined minimum pension exists for retirees who have contributed below certain thresholds, provided they can demonstrate a lack of sufficient income. The purpose is to ensure every beneficiary has enough money to cover basic needs.
The government notes that the new text strengthens protections across the system by improving minimum pensions for older retirees living alone, whether they receive retirement, disability, or survivor benefits. While many beneficiaries have already risen above the relative poverty line thanks to previous increases, some deprivation remains, and the reforms seek to address those gaps.
The minimum pension amounts vary from €783.07 to €1,549.35 per month, depending on factors such as age at retirement (with 65 as a common benchmark), eligibility for disability, and whether the pensioner has a dependent spouse. The increases applied range from 5 percent to 7 percent based on personal circumstances.
Minimum pensions remain as follows:
Retirement at age 65 and older:
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Pensioners with a dependent spouse: €1,032.85 per month (€14,460 per year)
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Pensioners without a spouse: €837.07 per month (€11,719 per year)
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Pensioners with a non-dependent spouse: €794.50 per month (€11,123 per year)
Retirement due to severe disability at age 65:
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Pensioners with a dependent spouse: €1,568.64 per month (€21,961 per year)
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Pensioners without a spouse: €1,255.71 per month (€17,580 per year)
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Pensioners with a non-dependent spouse: €1,191.78 per month (€16,685 per year)
Retirement before 65 years of age is also covered, with minimums adjusted to reflect different family and health circumstances.
Retirement under 65 years of age:
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Pensioners with a dependent spouse: €968.35 per month (€13,557 per year)
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Pensioners without a spouse: €783.07 per month (€10,963 per year)
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Pensioners with a non-dependent spouse: €811.64 per month (€11,363 per year)