One of the objectives of the pension reform, which came into force this year, is to increase the lowest benefits to improve the purchasing power of retirees who receive them.
To achieve this end, the Government has decided to revalue contributory pensions based on the CPI, so this year they have risen 8.5%and increase non-contributory retirement and disability 15%.
These measures, from which 11.8 million people benefit, have placed the minimum pension for this year at 10,963 euros per year for retirees without dependent spouse, which means 783 euros per month. While the maximum pension reaches 42,829 euros per year, Or what is the same, 3,059 euros per month.
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This difference makes those who receive higher pensions receive 2,276 euros per month more than those who receive lesswhile in 2022 this difference was less, 2,098 euros per month.
This gap will narrow in the coming years, because, according to the new reform, the minimum contributory pension may not be less than 14,300 euros from 2027.
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So, “the new reform will act more on minimum pensions, without relating them to the CPI, but to the poverty line. However, the maximums will rise until 2050 slightly above the CPI, so the normal thing is that until 2050 the gap is reduced somewhat”, says Enrique Devesa, a professor at the University of Valencia and an IVIE researcher.
On the contrary, a gap that will increase as of this year promoted by the pension reform, in the opinion of Isabel Casares, general secretary of the Organization of Pension Consultants (Ocopen), is the one that opens between “the contribution bases that those who receive the highest salaries will have to face and the pensions they will receive in the future, since the former are going to believe in a greater proportion than the maximum pensions, so the difference between what is quoted and what is received as a pension will increase”.
For now, Expenditure on contributory pensions continues to rise and now stands at 11.7% of the Gross Domestic Product (GDP), according to data from the Ministry of Inclusion, Social Security and Migrations.
In April, the payroll of contributory pensions was 11,962.7 million of euros with which they were paid 10,026,535 benefits to more than 9 million pensioners.
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Almost three quarters of the list of contributory pensions in April were allocated to retirement pensions, specifically, 72.8%, that is, 8,711 million euros.
1,998.3 million euros were dedicated to paying widow’s pensions, while the payroll of benefits for permanent disability amounted to 1,059.1 million; that of orphans, to 162.9 million and benefits in favor of relatives, to 31.3 million.
The The average pension of the system was 1,193.1 euros in April monthly. This amount includes the different types of pension: retirement, permanent disability, widowhood, orphanhood and in favor of relatives.
The average retirement pension reached 1,373 euros. While by regimes, that of the General Regime was 1,531.5 euros per month, while the lowest was registered by the Self-Employed Regime with 914.3 euros.
The Retirees from the Coal Mining sector are the most favored if one takes into account that their average pension stood at 2,674.1 euroshigher than that of the Sea Regime, which reached 1,522.1 euros.
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