More than nine million retirees are facing decisive months for the amount of their pensions, given that it will be on these dates that the revaluation of retirement, widowhood, temporary disability or non-contributory benefits such as benefits will be decided retirement and disability.
Until a few years ago, the revaluation of pensions depended on the government in place, since it was the Executive which was responsible for designing the increases, different each year, but José Luis Escriva, former Minister of Social Security, set out to establish a method that will remain the same to provide greater certainty to all retirees.
From 2022 the revaluation of pensions is linked to the evolution of inflation. Thus, contributory pensions will increase at the same rate as the average CPI (Consumer Price Index for the previous 12 months).
Law 21/2021 of December 28 (you can consult it at this link) modifies in its article 2 the general social security law to protect that “social security pensions, in their contributory modality, including the amount of the minimum pension, will be reevaluated at the beginning of each year in the percentage equivalent to the average value of the interannual variation rates expressed as a percentage of the Consumer Price Index for the twelve months preceding December of the previous year.“.
This led to an increase in pensions of 2.5% in 2022, 8.5% in 2023 (after a major inflationary crisis which inflated this increase) and 3.8% in 2024. But what will happen? it in 2025?
How much will pensions increase in 2025?
In the absence of confirmed inflation data for the month of September (the advance for September is 1.5%, but confirmation is still missing) and data for October and November, it is not possible to elaborate only an approximation which will depend, in any case, on the evolution of the CPI until the end of the year.
Taking into account the evolution of the interannual CPI from December 2023 to September 2024 (considering these advanced data as good), said evolution would be between 2.9% and 3%, since the calculation leaves it at 2.94%.
How much will minimum and non-contributory pensions increase in 2025
Another aspect to take into account and on which we must expect developments is the increase in minimum pensions and non-contributory pensions, which experience additional increases when allocated to more vulnerable people.
During the second stage of the Escriva pension reform, they were armored additional increases for both benefits from 2024 to 2027 to link the minimum retirement pension with dependent spouse to the poverty threshold of a household made up of two adults and non-contributory pensions to 75% of the poverty threshold of a single household.
In accordance with article 35 of Royal Decree-Law 2/2023 of March 16 (you can consult it on this link), to carry out this adaptation in 2025
- The minimum pension will be increased sufficiently so that on January 1, 2025, the gap that exists compared to the poverty threshold for a household of two adults will be reduced by 30%.
- Non-contributory pensions will be increased sufficiently so that on January 1, 2025, the gap that exists with 75% of the poverty threshold for a single household will be reduced by 30%.
