New and great increase in pensions: these are the dates on which they will increase

Last January 2023, the new mechanism for the revaluation of contributory pensions was carried out according to the Consumer Price Index (CPI) of 8.5%. On the other hand, the 15% increase for non-contributory pensions was extended in 2023. Some measures contemplated by the central Executive so that pensioners could face the inflationary rise and thus avoid the loss of purchasing power.

In this sense, they want to guarantee that the minimum contributory pensions reach 60% of the median income in Spain by 2027, “with a progressive calendar of increase between next year and 2027 to achieve that objective, so that from 2027 they cannot be lower than the poverty line”, explain the experts of the BBVA Future Retirement portal.. On the other hand, the objective is to increase non-contributory pensions “until reaching 75% of the poverty threshold for a single-person household by 2027.”

How pensions will rise until 2027

This last package of Pension Reform measures was approved through Royal Decree-Law 2/2023, of March 16, on urgent measures to expand the rights of pensioners, reduce the gender gap and establish a new sustainability framework for the public pension system.

Thus, the gap that currently exists between “the reference amount of the contributory retirement pension for people over 65 with a dependent spouse and the poverty threshold calculated for a household of two adults, will be gradually reduced, according to the following scale”:

According to the calculations of the Social Security, the minimum retirement pensions with a dependent spouse will go from the current 13,526.80 euros per year, to 16,500 euros in the year 2027. Likewise, on January 1, 2024, Social Security contributory and Passive Class pensions will rise again in accordance with the average interannual CPI for the month of November.