Pensioners will face new challenges beginning in 2025 (fortunately, for the better). 2025 is also a year of increase. An increase in the second phase of the pension reform ensures that some pensioners will earn an “extra” 350 euros per year. This adjustment is consistent with the annual increase in the Consumer Price Index, ensuring that the most vulnerable retirees do not lose purchasing power as a result of the recent price increases.
A Rise of 18.24% in Non-contributory Pensions
Non-contributing retirees will profit the most from this rise because they did not contribute enough throughout their working years to qualify for a contributory pension.
In 2025, these pensioners’ income will increase by no less than 18.24%, or 350 euros a year. With this change, the annual amount of non-contributory pensions will increase from 7,250 euros to 7,600 euros, distributed in 14 payments. Every month, this equates to a 542.85 euro rise, which greatly improves the circumstances of thousands of people who rely on this assistance.
This rise is part of a larger program aimed at ensuring that non-contributory pensions reach 75% of the poverty line for a single person in Spain, a goal that the government intends to gradually attain by 2027. These pensions will continue to expand in the future years, with monthly payments increasing to 564 euros in 2026 and 592 euros in 2027, for an annual income of 8,250 euros (large words).
Requirements to Receive this Increase in Pension
If you receive a non-contributory pension this year, you are not required to do anything. If you wish to access or keep it, you must meet specific criteria. Beneficiaries must be over 65 years old and have lived in Spain for at least ten years.
Furthermore, candidates must not exceed the annual income limit for a single person, which is 7,250.60 euros. This criterion rises according to the number of individuals with whom the pensioners reside. For example, a family of two persons has a maximum annual income of 12,326 euros, whereas four cohabitants have a ceiling of 22,476 euros. This is not rare in today’s culture when many people are obliged to live with their parents as they age due to costly rents.
It is crucial to highlight that this rise will help both non-contributing retired pensioners and persons with disabilities who have not contributed enough to qualify for a contributory pension. Approximately 450,000 people will benefit from this boost as lagradaonline.
The Effects of the Rise on Pensioners
The revaluation of non-contributory pensions is intended to ensure that people who need it the most do not lose purchasing power owing to inflation.
In addition to non-contributory pensions, the government has announced that additional benefits, such as minimum contributory pensions, widow’s pensions, and the gender gap supplement, will be significantly increased by 2025. These increases are likewise related to the CPI and are meant to protect pensioners from the rise in the “cost of living”.
Furthermore, the reform plan ensures that this growth will continue gradually until 2027, guaranteeing that those in greatest need do not lose their fundamental right to a reasonable standard of living.