Monday, December 11, 2023

Social Security shows how much pensions could increase in 2024

The acting government estimates that the revaluation of pensions for next year, in line with the change in the Consumer Price Index (CPI), will reach between 3.5% and 4.5%. Given the information on inflation in the first nine months of the year and the expectation of insufficient changes in the remaining months, the distance in which the revaluation of pensions will be located for the next year

It is important to emphasize that the lack of updating the General State Budgets (PGE) at the beginning of the year due to the delay in the formation of the government will not compromise the revaluation of pensions, according to the Ministry of Inclusion, Social Security, and Migration.

This is the third consecutive year in which pension contributions will increase according to the formula established in the pension reform, taking into account the CPI to avoid the loss of purchasing power for beneficiaries.

Big increase

In addition to the general revaluation of pensions based on the evolution of prices, an increase of 2% is envisaged until 2027 for non-contributory pensions and minimum pensions below the poverty line. The goal is that, in 2027, the minimum retirement pension contribution of a dependent spouse will reach at least 16,500 euros per year (equivalent to 1,178.5 euros per month in fourteen payments), which represents an increase of 22% compared to the current figure.

In the same way, non-contributory pensions are expected to experience an increase greater than the average pension, which will add up in 2027 to 75% of the poverty threshold established for a single-person household.

World Nation News Desk
World Nation News Desk
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