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Good news for Spain’s retirees – pensions are set to rise again in 2026, as the government keeps its promise to protect pensioners’ purchasing power from inflation. The increase will be based on the average inflation rate recorded between December 2024 and November 2025, according to the latest projections from the Ministry of Social Security. If the forecasts hold, contributory pensions – the most common type – will go up by around 2.6 per cent. The maximum pensions could rise a little more, by about 2.7 per cent, thanks to an extra adjustment introduced in Spain’s most recent pension reform. But the biggest winners will once again be those receiving minimum, non-contributory, and widowhood pensions, which will rise above the inflation rate. This move is part of the government’s plan to narrow the gap between the lowest pensions and the EU’s poverty thresholds by 2027, ensuring that no pensioner in Spain falls below the European poverty line. How much will pensions increase in 2026? According to preliminary data, the average contributory pension in Spain – currently around €1,506 per month – will rise to roughly €1,544 next year. For widowhood pensions, the average payment will increase from about €935 to €958, while permanent disability pensions will climb from €1,209 to €1,239. Those receiving the maximum pension, which this year sits at €3,267.60 per month, could see it reach around €3,355 in 2026, reflecting the small extra adjustment above inflation. As for minimum pensions, the rises will be slightly higher than the overall average. Pensioners without a dependent spouse currently receive about €874 per month, which should increase to around €897, while those with a dependent spouse are expected to go from €1,127 to €1,158 per month. It may sound like small amounts, but for many retirees, these few extra euros each month can make a real difference – especially when it comes to paying for rising living costs such as food, electricity and housing. New pension rules and challenges for 2026 The rise in pension payments won’t happen in isolation. Starting next year, several key reforms will come into effect, reshaping Spain’s pension system for future retirees. One of the most important changes is a new dual calculation system, which will allow workers to choose between two different formulas to calculate their retirement base. The system will automatically apply whichever option gives the retiree a better outcome – a move designed to make the system fairer and more flexible. At the same time, the retirement age will continue to rise, reaching 66 years and 10 months for those who have contributed less than 38 years and three months. Anyone who has reached that contribution threshold will still be able to retire at 65. However, these improvements come at a cost. The expected increases in pensions and other benefits are forecast to add more than €6 billion to public spending next year. While the government insists the system remains sustainable, experts warn that balancing higher payouts with long-term financial stability will be a major challenge in the coming years. A fairer deal for Spain’s pensioners The government’s goal is not only to keep up with inflation, but also to lift the lowest pensions closer to European standards. By 2027, minimum and non-contributory pensions are expected to be much closer to the EU poverty thresholds, offering stronger protection for low-income households and widows with dependents. If current projections are confirmed when the official CPI is published in November, Spain’s 9 million pensioners can look forward to a modest but steady increase in their monthly payments in 2026. While the rise won’t completely offset the cost of living crisis, it does signal a continued effort to make the pension system fairer – ensuring that those who built the country over decades of work are not left behind. Stay tuned with Euro Weekly News for more news from Spain
