The end of the year is approaching and with it the expected revaluation of pensions. Like every beginning of the year, the amount of these benefits is updated according to the interannual CPI for the 12 months prior to December with the intention that retired people manage to maintain their purchasing power despite no longer working. That is why its rise is one of the most sought-after novelties each year.
According to Ignacio Solsona, a labor lawyer, in 2027 different changes will be made both in the retirement conditions and in the pension calculation formulas. Beyond the increase in the ordinary age and years of contributions to be able to access this benefit without reducing coefficients, one of the questions that those who are already retired ask the most is How the new year will affect your economy.
To know exactly how much pensions will be revalued in the next year, it will be necessary to have the Consumer Price Index (CPI). This is calculated by comparing the cost of a fixed basket of goods and services at current prices against the total of that same basket in the reference year. “It is true that we have not yet finished the year,” says the lawyer, “but according to the CPI that we have been accumulating to date, it is easy to assume that pensions will rise by more than 3%“.
When will we know how much pensions will rise in 2027?
The exact figure will be known on November 27 and the National Institute of Statistics will be in charge of revealing said information. Once the year-on-year CPI is available, it will be possible to calculate how much pensions will rise in the next year. Nevertheless, The amount will not be confirmed until December 15although there is usually not a big difference between the estimate and the official amount.
Other sources, such as the Funcas analysis center, make more generous predictions and expect pensions to increase between 3.5% and 3.6%, as reported by “Europa Press”. All due to an obligation established in Article 58 of the General Law of Social Securitywhich provides that this benefit will be revalued “at the beginning of each year in the percentage equivalent to the average value of the interannual variation rates expressed as a percentage of the Consumer Price Index.”
This percentage will apply to the amount received monthly by each pensioner. Therefore, if you are assigned a benefit of 1,200 euros and a 3.5% increase is approved, This will become 1,242 euros in 2027.. Although this will not be the only increase that retirees will be able to benefit from next year, since “minimum contributory pensions achieve the objective of equalizing them according to the poverty line,” the lawyer announces.
Increase in minimum contributory and non-contributory benefits
This means that those retirees over the age of 65 and whose spouse is dependent on them must receive a minimum pension that exceeds the “poverty threshold of a household composed of two adults.” Following this provision and according to the latest figure from the INE, waiting for it to be updated in the following months, it is established that under these conditions the benefit must be equal to or greater than 1310 euros.
This issue will also benefit those who are receiving a non-contributory pension. According to Social Security, these types of benefits are recognized for those who are “in a situation of protectable need” and, in turn, “lack sufficient resources for their subsistence under the legally established terms, even if they have never contributed or have contributed long enough to reach the contributory level benefits.”
In these cases, and starting in 2027, the amount received must be equal to 75% of the poverty line. “This would place them above 655 euros per month for 14 payments,” explains Ignacio Solsona. However, to have the exact figures of the revaluation and the threshold, it will be necessary to wait until the end of the year.