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Pensioners in Spain to receive a significant monthly boost in 2025

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Retirees in Spain with both contributory and non-contributory pensions will receive more money next year

Pensioners in Spain to receive a significant monthly boost in 2025

Pensioners in Spain can expect a very happy new year. As of January 1, 2025, retirees receiving both contributory and non-contributory pensions can look forward to a substantial increase in their monthly payments. This is not just a minor adjustment, but a significant boost to their income.

Every year, pensions in Spain are re-evaluated based on the Consumer Price Index (CPI), which ensures that pensioners who receive a state pension from the Spanish social security system don't lose purchasing power due to inflation.

For 2025, the average inflation rate for the 12 months prior to December 2024 will be used to calculate the increase. The final CPI figure will be announced on December 13, and it's expected to be around 3.06%.

But what does this mean for pensioners? Contributory pensions are expected to increase by a similar percentage to the CPI, which would be around 3.06%. However, non-contributory pensions and the Minimum Vital Income (IMV) will increase above inflation, with the goal of reaching 75% of the poverty line for a single-person household by 2027.

One of the most significant changes planned for 2025 is the elimination of the maximum pension limit, which will be extended until 2050. This means that the initial maximum pension will increase progressively, adding to the increase in the CPI an annual cumulative 0.115%.

In 2025, the maximum pension is expected to increase by around 3.615%.

And there’s more good news, as a 10% increase in the gender gap supplement will also be applied next year, aiming to reduce the existing inequalities in the pension system between men and women. This supplement will be added to the revaluation of pensions according to the CPI.

The people that will benefit most from the increase planned for 2025 are those in receipt of non-contributory pensions. These pensioners can expect an increase of 18.24% in their income, which will translate into a bump of 350 euros per year.

The annual amount of non-contributory pensions will reach 7,600 euros per year, distributed in 14 payments, at a rate of 542.86 euros in each.

Taking all of this into account, 2025 promises to be a key year for the pension system in Spain, with increases linked to inflation and a series of reforms aimed at contributing to the sustainability of the system.

In other news: Storm Kirk churns out giant tuna and monstrous calamari along beaches in Spain

Image: Archive

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