How much will pensions rise in the coming years?

The government, in the State General Budgets (PGE), announced a significant increase in pensions for 2023. The increase generated to mitigate the effects of inflation and increase in energy, fuel and electricity prices. As a result, the shopping cart for the war in Ukraine.

It is estimated that the increase will be around 8.5%, something that will be validated once the average annual figure for the Consumer Price Index (CPI) is known in mid-November.

This average data will be found based on Consumer Price Index between December 2021 and November 2022 It will determine the final increase in benefits, although it is already known that it will be the highest in Spain’s history and will involve a total outlay of around £15,000 million.

How much will pension contributions rise?

Pensions, that is, those that are generated with the contribution over the life of the work, will rise in 2023, given that 8.5% is estimated by the government, up to the following monthly amounts (14 payments):

  • Average pension: From €1,256.9 currently to €1,363.8

  • Average widow’s pension: From the current € 780.17 to € 846.5

  • Average pension system: From 1092.18€ currently to 1185€

  • Maximum pension: From the current 2,820 euros to 3,059.7 euros

  • Minimum pension (for pensioners without dependent spouses): from €721.70 currently to €783.04

In the case of non-contributory annuities, those benefits that are obtained when a series of requirements are met, the increase is also expected to be 8.5%. Therefore, the amount to be received will go from 421.4 euros currently to 457.21 distributed over 14 payments.

It should be noted that these, non-contributory pensions, currently enjoy a temporary increase of 15%, until December 31, 2022, as a cushioning measure for the effects of the war in Ukraine.

How much will pensions rise in the coming years?

As for the increase that the pensions will experience in the coming years, it is impossible to calculate at present because the government has tied the revaluation on the basis of the annual consumer index in order to ensure the purchasing power of the pensioners.

The average price increase is found through monthly CPI data from December to November of the following year, so the exact percentage increase will always be announced from the penultimate month of the year.

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