A pension reform requested by Brussels will see the retirement age in Spain is due to change in January 2023
Currently, the legal age of ordinary retirement is 66 years and two months, provided that the worker has worked for just less than 37 years and six months. Those who have contributed 37 years and six months or more can retire even at 65 years.
The end of the year is approaching in the midst of a political and economic storm due to the Pension reform. The proposal that the Minister of Social Security, José Luis Escrivá, finally presented on Monday, December 19, to the unions and employers consists of extending the period of time to calculate the benefit of the last 30 years of a persons working life until 2038.
However, the exception is that you can choose the 28 best years, this will raise the maximum contribution bases by 30% additional to the increase in inflation during the period 2025 to 2050.
These are the two measures that remain to be finalised in the reform that must be approved before the end of the year to comply with a Brussels directive.
Workers of near-retirement age are wary of the new reform fearing that their incomes will be reduced by the new calculation. In addition, the arrival of the new year brings another change in the age of access to retirement under the reform that was reflected in Law 27/2011, where it was decided to increase the retirement age progressively.
The final objective of the reform is that, by 2027, the ordinary retirement age will have to 67 for workers with less than 38 years and six months of contributions.
Spanish Pensions to Increase Significantly From January
The Spanish government has announced that state pensions will rise from January, increasing the average pension income by around 8.5%.
For example, a pensioner aged 65 or over with a dependent spouse currently receives €12,467 per year or €890.50 per month. In 2023, the pension will increase to €20,290 with monthly minimum payments rising to €966.19, meaning on average, pensioners will receive around 100 euros extra each month.