In Spain, a monthly total of 862 euros for half board is not enough for many retirees. To ease this burden, the National Institute of Social Security (INSS) established a supplement that adds an economic amount to pensions for eligible individuals. This top-up is funded through contributions and is generally smaller than the amount set by the current General Government Budgets each year.
This financial aid is a relief for retirees whose pension falls below the minimum, and eligibility requires legal residence in Spain along with an annual income under 8,614 euros.
Remarriage and other reasons for losing a widow’s pension
According to the latest data from the Ministry of Labor, Immigration and Social Security, Spain has 2,177,222 pensioners who receive the minimum supplements. This figure represents about 24% of the total retiree population, which stands at 9,067,433. In plain terms, roughly one in four pensions relies on this supplement to meet the minimum levels established in current budgets. [Citation: Ministry of Labor, Immigration and Social Security]
How much will non-contributory pensions increase in 2023?
It is important to note that the amount in this annex cannot be automatically carried over from year to year. Social Security reviews it annually by examining each beneficiary’s income. If income is low, the supplement may rise; if income is higher, the supplement could decrease. [Citation: Social Security Administration]
MEI: less tax on your payroll
Social Security may deduct part of a pension in certain cases. To prevent this, retirees must file a certificate before the end of March each year. The filing concerns income contributions and tax returns that show any inheritance assets where applicable. [Citation: Fiscal Administration]
What does not presenting proof of income mean?
If the required document is not provided when needed, Social Security can impose penalties by reducing the pension and withdrawing the minimum supplement. The sanction is lifted once the statement is submitted and access conditions are met.
OCU alert for retirees and pensioners
It is crucial to recognize that the smallest supplement serves as essential basic help for many retirees in Spain who struggle to cover fundamental living costs. Beneficiaries must submit their income statements on time, as delays can create serious problems.
Why retirees are lucky
The amount of the supplement depends on the pension contribution that needs to be added. Social Security calculates the total beneficiary income on an annual basis, and the remaining portion is paid by Social Security until the minimum amount is reached. [Citation: Social Security Administration]