Funcas calculates a 3.6% revaluation for contributory pensions in January 2027, with an additional cost of €7 billion for Social Security. The average pension will exceed €1,424 per month for the first time.
Contributory pensions will rise by around 3.6% in January, according to calculations provided by the Foundation of Savings Banks (Funcas) to elcorreo.com. This will be the third largest increase since 2010, surpassed only by the 8.5% in 2023 and the 3.8% in 2024, both linked to the energy shock from the war in Ukraine.
The revaluation will affect more than 10.2 million recipients of a public benefit, including civil servants in passive classes. The increase has been applied automatically since 2022 based on the average inflation from December to November, without the need for government approval.
The CPI has risen from 2.3% in January and February to 4.9% in September due to the conflict in the Middle East. With the preliminary data from September, the average inflation over the last ten months stands at 3.3%, but Funcas estimates that October and November will maintain an average CPI above 4.6%, resulting in this 3.6% revaluation.
The average pension in the system will increase by nearly €50 in January and will exceed €1,424 per month for the first time, about €700 more per year. The more than 6.7 million retirees will see their payments increase by over €56 to surpass €1,632 monthly. Those from the General Regime will approach €1,800 per month, an increase of €62, while self-employed individuals will receive just over €1,100 after a rise of €38.
“Just for this pension update, the annual bill for the system will grow by about €7 billion, to which another €1 billion for passive classes will be added.”
According to María Jesús Fernández, senior economist at Funcas, the total increase in spending in 2027 will soar by €14 billion when factoring in the substitution effect and the rise in pensioners. The system has been in deficit since 2012.
The widow's pension will increase by an average of about €35 to €1,011. The permanent disability benefit will rise by €45 monthly to €1,300, the orphan's benefit will increase by €20 to €572 per month, and the family benefit will rise from €825 to €854, an increase of €30.
The nearly 2.6 million recipients of minimum and non-contributory pensions will see an increase greater than 3.6%, as the reform approved in March 2024 agreed on a rise above the CPI linked to poverty thresholds until 2027. The final amount will be known at the last Council of Ministers meeting of the year.
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