After Congress rejected the decree to revalue pensions for retirees, retirement pensions in Spain will continue to be revalued according to the consumer price index (CPI) to maintain the purchasing power of beneficiaries. With 25 years of contributions, the applicable percentage to the regulatory base is 80%, which directly influences the final amount of the pension, as indicated by Social Security.
The pension calculation system remains unchanged for 2024, but an alternative option will be implemented in 2026, which will allow the choice between two methods: the current one, which considers the last 25 years, and one that takes into account the last 29 years by eliminating the two worst contribution years.
To retire in 2025 with 25 years of contributions, the established ordinary age must be met, which will be 66 years and 8 months if 38 years and 3 months of contributions are not reached.
In addition, Social Security will determine by itself which is the most favorable option for each pensioner, guaranteeing an update starting in January 2026 for those who retire in 2025, with the pension amount evolving with inflation. Individuals with low incomes can request the minimum supplement if their pension is below the established threshold.
The calculation of the pension may be affected by factors such as the existence of periods without contributions, which are integrated into the regulatory base according to established criteria, or incentives for deferring retirement beyond the ordinary age, with bonuses of up to an additional 4% in the annual pension or a lump sum payment. Those who meet this requirement may access retirement at 65 years of age, determining the regulatory base based on the last 25 contribution years and applying a percentage that varies according to the years worked.
