Year after year, pensions are changing. This has been the case in 2024, a period in which contributory pensions have undergone a significant revaluation. Despite this increase in the amounts, the aging of the population means that the outlook for pensions is not very promising. In addition, the ordinary retirement age was raised at the beginning of the year to 66 years and 4 monthswhich is of concern to future pensioners.
In this regard, more and more people are opting to plan for regular savings as they approach retirement. The PIB Group Iberia’s Investment & Savings team has been advising on these products has been advising on these products for decades, depending on the situation and profile of each client, with options to complement retirement with regular savings. retirement with periodic savings that go far beyond the pension plan.
So, if you are concerned about how the pension reform may affect you and are making calculations about the minimum and maximum pensions in 2023continue reading this post. We offer you an x-ray of the current situation for pensioners and for those who already foresee the end of their working life.
How are pensions in 2024?
According to data reported in the Social Security magazinemagazine, the amounts of SS contributory pensions in 2023 have been revalued by 8.5%. with respect to the average CPI between December 2021 and November 2022. This increase is due to compliance with the law that obliges the State to maintain the purchasing power of Spanish pensioners, among other measures to strengthen the financial and social sustainability of the public pension system.
Since December 2020, prices have skyrocketed in our country. That is why in 2021 the Executive decided link the revaluation of pensions to the Consumer Price Index. In this way, the main objective is to alleviate the loss of purchasing power of retirees.
How much will minimum pensions go up?
The Government approved in March 2023 a second part of the pension reform, which includes increases in the maximum bases and contributions, in addition to establishing a dual model for calculating pensions and several improvements in minimum pensions.This includes increases in the maximum bases and contributions, in addition to establishing a dual model for calculating pensions and a few improvements in minimum pensions.
Specifically, the latest amendments to the Royal Decree-Law establish a 22% increase in minimum contributory pensions. 22% increase in minimum contributory pensions.. A change that, as we have already mentioned, seeks to address the dreaded inflation.
Taking this evolution as a reference all indications are that minimum contributory pensions will rise progressively between 2024 and 2027.
What is the maximum pension in 2024?
Maximum pensions are more complicated to calculate, since they always depend on different variables. So what is the maximum pension in Spain today?
The maximum amount for all contributory pensions, ie, the maximum pension in 2023, is set at 3,059 euros per month compared to 2,819 euros last year, an increase of 240 euros.
This means that the maximum pension for 2023 is 42,829 euros per year paid in 14 payments.. However, it must be taken into account that, in order to access this maximum retirement pension in Spain at the age of 65 -that is, to reach 100% of the regulatory base-, it is necessary to have contributed under certain conditions for at least the minimum period of time, 37 years and 3 months.
This amount cannot be exceeded either by collecting one or several pensions at the same time, unless the supplement to reduce the gender gap is received. In the latter case, if there are four or more children, the maximum pension in Spain could reach 3,180.6 euros per payment.
As for non-contributory pensions, the maximum annual pension is 6,784.54 euros. which, spread over 14 payments, is 484 euros per month. The non-contributory disability pension can reach 10,176.81 euros per year if the beneficiary has a degree of disability equal to or greater than 75%.
What is the IRPF of the maximum pension 2024?
For pensions higher than 30,000 euros, as is the case of the maximum pension 2023 (42,829 euros), a 15.59% income tax withholding will be applied. 15.59% personal income tax withholding.
In Spain, the average retention rate is 7%, while the average pension is 1,193.1 euros per month.
What is the minimum pension in 2024?
As part of the Welfare State, there is a guaranteed minimum monthly pension in benefits such as retirement, which varies according to the pensioner’s age. varies according to the age of the pensioner (whether or not he/she is over 65 at the time of retirement) and his/her dependents. and the number of dependents.
We tell you what are the figures of the minimum pension 2023 according to each situation.
Table of minimum retirement pension at age 65
For pensioners over 65 years of age, there are different minimum pensions, the lowest being the one for those pensioners who have a spouse but no dependents (743.30 euros per month).
| Retirement at age 65 | Minimum monthly amount | Minimum amount per year |
| With dependent spouse | 996.20 euros | 13,526.80 euros |
| Without spouse (single economic unit) | 783.10 euros | 10,963.40 euros |
| With spouse, but not dependent | 743.30 euros | 10,406.20 euros |
Table of minimum retirement pension under 65 years of age
The minimum pension 2023 for retirements of those under 65 years of age offers somewhat lower amounts.
| Retirement under age 65 | Minimum monthly amount | Minimum amount per year |
| With dependent spouse | 905.90 euros | 12,682 euros |
| Without spouse (single economic unit) | 732.60 euros | 10.256,40 euros |
| With spouse, but not dependent | 692.50 euros | 9,695 euros |
Pension table for retirement due to severe disability
In retirement due to severe disability, the figures also vary, with minimum pensions ranging from 1,174.70 to 1,449.30 euros per month, depending on the situation.
| Retirement at 65 years of age due to severe disability | Minimum monthly amount | Minimum amount per year |
| With dependent spouse | 1,449.30 euros | 20,290.20 euros |
| Without spouse (single economic unit) | 1,174.70 euros | 26,445.80 euros |
| With spouse, but not dependent | 1,115 euros | 15,610 euros |
How is the pension calculated?
To calculate the retirement pension it is necessary to know the years contributed to social security and the contribution bases.. In order to facilitate this calculation, the Social Security electronic office makes available to the public a retirement simulator.
If you need expert help to plan your regular savings and ensure a comfortable retirement, you can contact PIB Group Iberia. Our team will show you which are the best pension plans in 2023.
Only with the the peace of mind and security offered by the professionals of a brokerage firm with more than 30 years of experience you will be able to plan something as important as your retirement.
