Spain Rejects Extending Pension Calculation Period, Introduces New Dual Calculation Model for 2026

The Spanish Government has decided not to extend the pension calculation period to 35 years, a move suggested by the OECD to enhance the system's financial sustainability. Minister of Inclusion and Social Security, Elma Saiz, confirmed that the current pension reform is adequate and no further changes to the calculation period will be made. This reassures millions of pensioners who were concerned about potential reductions in pension amounts if the calculation period were extended.

Instead of extending the reference period, Spain plans to implement a new dual calculation method starting in 2026 for new pensioners. This model will calculate pensions based on two different formulas and automatically apply the more beneficial one, ensuring fairness and optimized pension benefits.

Additionally, pensions will be revalued by 2.7% in line with last year's inflation, leading to an approximate increase of 570 euros annually for an average pensioner. These changes aim to protect purchasing power while maintaining the sustainability of the Social Security system without the need for further legislative adjustments.

In the province of Córdoba, over 163,000 pensioners will see increases ranging from 2.7% to 11.4% for minimum and non-contributory pensions in 2026. This is especially significant for the region with many recipients earning below the minimum wage.

Saiz emphasized that the government's approach balances financial sustainability with social protection. The budget has allowed the continuation of planned social measures, such as pension revaluation and maintaining existing supports, without additional regulatory changes.