Spain to Raise Maximum Pensions and Adjust Retirement Rules in 2026
Spain plans to increase maximum pensions by over 2.7%, introduce a dual pension calculation system, and raise the retirement age for many from 2026, aiming to better align pensions with inflation and encourage longer work contributions.
- • Maximum pensions expected to rise by 2.715% to about 3,356 euros per month in 2026.
- • Contributory pensions projected to increase by 2.6%, with higher boosts for minimum and non-contributory pensions.
- • A dual calculation system for pensions will be introduced, allowing retirees to choose the better option.
- • Retirement age will be postponed to 66 years and 10 months for those without sufficient contribution years; others can retire at 65.
Key details
Spain is set to make significant changes to its pension system in 2026, including a revaluation of pensions, an increase in the maximum pension amount, and adjustments to retirement age and calculation methods.
The preliminary data on Spain's year-on-year Consumer Price Index (IPC) will be released on November 29, 2025, which will help determine pension revaluation rates for the upcoming year. The definitive pension increase, based on the average inflation from December 2024 to November 2025, is expected to be announced on December 12. Current projections estimate a 2.6% rise for contributory pensions. Minimum pensions, non-contributory pensions, and widow’s pensions with family burdens are expected to see higher increases aimed at reducing poverty among the elderly.
Maximum pensions will increase by approximately 2.715%, as indicated in a recent BBVA report. Currently, the maximum monthly pension stands at 3,267 euros, or roughly 45,746 euros annually. With the projected increase, the maximum pension will reach around 3,356 euros per month, totaling nearly 47,000 euros over 14 payments.
Starting in 2026, pension calculation will involve a dual system, offering retirees a choice between two methods to determine their regulatory base, enabling them to select the most favorable option. Additionally, the retirement age will be raised to 66 years and 10 months for individuals who have not completed at least 38 years and 3 months of contributions. Those meeting this contribution threshold will be eligible to retire at 65.
These changes reflect Spain’s efforts to balance inflation impacts on pensions while encouraging extended workforce participation. As noted by the BBVA report, "The pension maximum increase aligns slightly above average inflation, providing better support for higher pensioners." The dual calculation system and raised retirement age aim to ensure sustainability and fairness in pension distribution in the face of demographic and economic challenges.
The decision awaits official confirmation following the final inflation data in December, but the outlook indicates a meaningful adjustment to improve pensioners' income and adapt retirement policies to current realities.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.