Spain is introducing a new pension reform effective from 2026. The main change is the implementation of a dual calculation model, under which the Social Security will automatically calculate the pension using two formulas and pay the higher amount. The first formula remains traditional and is based on the average salary over the last 25 years. The second, new formula will consider the last 29 years of contributions, allowing the exclusion of the 24 least favorable months. This is done to minimize the impact of career breaks on the pension amount. Furthermore, the reform revises the rules for integrating non-contribution periods ('gaps'). For women and fathers whose careers were interrupted by childbirth, starting in 2026, the first 60 'gaps' will be integrated at 100% of the minimum contribution base, the next 24 at 80%, and the rest at 50%. This change aims to recognize caregiving and reconciliation situations. The new calculation system will be phased in until 2037. Citizens will not have to choose between methods; the calculation will be performed automatically.
