The Importance of Retirement Pensions
Retirement pensions are vital support for many citizens in Spain. This system offers several benefits, the most well-known being the retirement pension, intended for those who have ended their working life. The ordinary age for retirement in 2024 is 66 years and 6 months after contributing less than 38 years. However, if the contribution exceeds 38 years, you can access retirement at 65. It should be noted that to obtain 100% of the pension, you must have contributed for a minimum of 36 years and 6 months (https://www.softcatala.org/resum-de-textos-en-catala/).
Expenditure on Pensions and Revaluation
Spending on pensions has experienced a significant increase, with a total of 9,288 million euros earmarked for this area by 2024. In addition, nearly 6.5 million people receive this benefit every month. This year, there has been a revaluation, resulting in a 5% increase in the average pension compared to the previous year.
Extra Pay for Pensioners
The Social Security has announced an extra payment for the month of June, which could amount to 6,350 euros for many pensioners. This extra payment corresponds to the monthly accrual of pensions during the first 6 months of the year. This means that some pensioners will be able to receive more than 6,300 euros, including the extra pay and other additional ones (https://www.softcatala.org/resum-de-textos-en-catala/).
Revaluation of Pensions and Sustainability of the System
The Spanish government has taken measures to revalue pensions in line with the Consumer Price Index (CPI) to ensure that pensioners do not lose purchasing power. Despite this, an increase in the number of beneficiaries is anticipated from 2025, and the increase in life expectancy poses sustainability challenges for the pension system in the long term.
