The 10.4 million pensions received by 9.4 million retirees each month – about 1 million of whom receive two pensions – will grow next year by at least 2.7%, it was confirmed on Friday after it was learned that inflation rose by 3% in November. This is because the law stipulates that pensions will, as a general rule, be revalued every year at the same rate of inflation in the twelve months between November of the current year and December of the previous year. In this case, the average price behavior in those months turned out to be 2.7%.
However, this figure must be confirmed on 12 December, when the final CPI is published, but this does not usually vary more than a tenth above or below, which usually has little impact on the average by which pension revaluations are calculated. Once the data is confirmed, pensioners will receive their pensions revalued from the January payroll.
This is the amount of increase for all contributory benefits, but minimums and non-contributory benefits are expected to increase somewhat. This was determined by the second phase of pension reform, approved in March 2024, in which the minimum pension and non-contributory pensions were approved to increase above average inflation. To do this, the rule sets an upward trajectory with the poverty threshold as a reference, year after year until 2027. But the government has not yet determined how much the lowest pensions will increase next year.
The revaluation would mean, roughly, an additional €572 a year for people with an average pension, while the system’s average pension would increase by €498 a year, according to Social Security calculations. In the case of maximum pensions
In addition, the 2.7% update will also apply to 715,000 pensioners who fit into the government’s negative tier system (the group of retired civil servants).
Regarding the cost that this modernization will have on the public treasury, taking into account that total spending on pensions will exceed 200 thousand million euros this year, the revaluation of pensions could reach about 5,400 million euros. Although this amount has doubled for budgetary purposes since January, because it was consolidated in order to be seeded into pension statements.