Pensions will rise by 2.7% in 2026

MadridContributory pensions will be revalued by 2.7% from January 1, 2026. The increase is the result of calculating the average Consumer Price Index (CPI) of the last 12 months (between December 2024 and November of this year), so that when inflation is confirmed3% year-on-yearThe increase in benefits will be fully confirmed on December 12th. The increase impacts the 10.4 million monthly benefits received by 9.4 million pensioners—it should be noted that nearly one million people receive more than one benefit. The 715,000 people receiving civil service pensions (mainly former civil servants) will also see their benefits increase by 2.7%. Since 2021, with the latest major reform of the pension system, benefits must be adjusted annually by law in accordance with the increase in the cost of living, to prevent beneficiaries from losing purchasing power. Until then, the increases were determined by the 0.25% index approved by the government of Mariano Rajoy (PP). "Pensioners are guaranteed to maintain their purchasing power next year, with their pensions rising in line with the CPI, a fundamental measure for people who have worked their entire lives," stated the Minister of Social Security, Elma Saiz, in a press release. Retirement benefits, which make up the bulk of the system (received by 6.5 million pensioners), will increase by an average of 572 euros per year. Thus, according to the ministry's calculations, the current average retirement pension (1,481.35 euros in 14 payments) will rise to 1,511.5 euros next year, an increase of 572 euros. This is almost 41 euros more per month, since pensions are paid in 14 installments, taking into account the summer and Christmas bonuses that Social Security pays this November.

As for the other contributory pensions in the system, from disability pensions to survivor's and orphan's pensions, they will increase by an average of 498 euros per year.

Currently, the average contributory pension in the Social Security system is 1,316.7 euros. This average includes the amount of the different types of pensions (retirement, permanent disability, widow's/widower's, orphan's, and dependent's pensions).

Minimum and non-contributory pensions

Now, it remains to be seen what the increase will be for minimum and non-contributory pensions (for those who haven't contributed enough to qualify for a benefit), which the Spanish government is increasing above the average for contributory benefits, precisely as a result of the system's reform last year and an agreement with unions and employers' associations. Specifically, the lowest pensions in the system must increase above the average until 2027 to reduce the gap with other benefits and lift them out of poverty. The 2.7% increase in non-contributory pensions will also influence the rise in the Minimum Living Income (IMV) next year, which is received by the poorest households. Currently, this benefit, approved during the Covid-19 pandemic, reaches 73,272 families, encompassing 2.4 million people.