Year by year, pensions are changing. This has been the case in 2024, a period in which contributory pensions have undergone a significant revaluation. Despite this rise in pension levels, the ageing 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 months, This is a matter of concern for future pensioners.
In this respect, more and more people are choosing to plan for regular savings as they approach retirement. The team of Investment and Savings of PIB Group Iberia has been advising on these products for decades, depending on the situation and profile of each client, with options to supplement the retirement with regular savings that go far beyond the pension plan.
So, if you are worried about how pension reform might affect you and you are doing calculations about your pension reform, you may want to consider minimum and maximum pensions in 2023, read on in this post. We offer you an x-ray of the current situation for pensioners and for those who are already looking at the end of their working lives.
Where do pensions stand in 2024?
According to data collected in the Social Security magazine, the SS contributory pension amounts 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 to link the revaluation of pensions to the Consumer Price Index. In this way, the main aim is to alleviate the loss of purchasing power of pensioners.
How much will minimum pensions rise?
The Government approved a second part of the pension reform in March 2023., The new pension system, which includes increases in the maximum bases and contributions, a dual model for calculating pensions and a number of improvements in minimum pensions.
Specifically, the latest amendments to the royal decree-law establish a 22% increase in minimum contributory pensions. A change which, as we have already mentioned, seeks to tackle the dreaded inflation.
Taking as a reference In the light of these developments, minimum contributory pensions are expected to rise progressively between 2024 and 2027.
What is the maximum pension in 2024?
Maximum pensions are more complicated to calculate, as 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 2,819 last year, an increase of 240 euros.
This means that the maximum pension in 2023 is 42,829 euros per year paid in 14 instalments. However, it should be borne in mind that, in order to be eligible for this maximum retirement pension in Spain at the age of 65, i.e. to reach 100% of the regulatory base, it is necessary to have contributed under certain conditions for at least, 37 years and 3 months.
This amount cannot be exceeded by receiving one or more 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.
For non-contributory pensions, the maximum is 6,784.54 euros per year. 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 tax rate for the maximum pension 2024?
For pensions higher than 30,000 euros, as is the case for the maximum pension 2023 (42,829 euros), an additional 15.59% personal income tax withholding.
In Spain, the average retention 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 age of the pensioner (whether or not over 65 years of age at the time of retirement from working life) and their dependants.
Here are the figures for 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 for those pensioners who have a spouse but no dependants (743.30 per month).
| Retirement at 65 | Minimum amount per month | Minimum amount per year |
| With dependent spouse | 996,20 euro | 13.526,80 euro |
| Without spouse (single economic unit) | 783,10 euro | 10,963.40 euros |
| With spouse, but not dependent | 743,30 euro | 10,406.20 euros |
Minimum retirement pension table under 65 years of age
The minimum pension 2023 for pensioners under 65 years of age offers somewhat lower amounts.
| Retirement under 65 | Minimum amount per month | Minimum amount per year |
| With dependent spouse | 905,90 euro | 12,682 euros |
| Without spouse (single economic unit) | 732,60 euro | 10.256,40 euro |
| With spouse, but not dependent | 692,50 euro | 9,695 euros |
Table of pensions for retirement due to severe disability
In retirement from 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 the age of 65 due to severe disability | Minimum amount per month | 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 of social security contributions and the contribution bases.. In order to facilitate this calculation, the Social Security electronic office provides citizens with a retirement simulator.
If you need expert help to plan 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 peace of mind and the security offered by the professionals of a brokerage with more than 30 years of experience. you will be able to plan properly for something as important as your retirement.
