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Date Published: 30/11/2021

ARCHIVED - Pensions in Spain set to rise 2.5 per cent in January

ARCHIVED ARTICLE

This is the largest pension re-evaluation in Spain since 2008

<span style='color:#780948'>ARCHIVED</span> - Pensions in Spain set to rise 2.5 per cent in January

The continuing rise in inflation will lead to the largest increase in pensions seen in the last decade, and pensioners are set to be paid 2.5% – or 26 euros – more in January, assuming that the CPI data published by the National Institute of Statistics (INE) on Thursday November 25 is accurate.

The increase is down to the first stage of the Spanish government’s reform, set to be formally approved later this week, which ensures that from now on, pensions will rise each year based on the average inflation of the previous 12 months.

The skyrocketing CPI, which has reached its highest level in 13 years, will see some six million retirees start the new year with an extra 25.96 euros in their pocket, bringing the monthly payment up to around 1,064 euros. The increase is part of the government’s long-term plan to assure that the generation of baby boomers maintain their purchasing power amid rising consumer prices.

In addition, the 2.3 million retirees on minimum and non-contributory pensions will also enjoy a boost of more than 3% next year.

The 2.5% inflation will also benefit the 8.8 million people paying public Social Security, though to a much lesser extent, who will receive a single payment of 16.60 euros on average.

Overall, the additional payments are expected to set the Social Security coffers back 5.6 billion euros.

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