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Good News For Pensioners!

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The Spanish government’s approved 3.8% revaluation of contributory pensions (retirement, permanent disability, orphan hood, and widowhood) for the year 2024 will result in an average monthly payment of 1,303.13 euros gross in the province of Málaga. This represents an increase of 47.71 euros from the 1,255.42 euros received in the just-concluded 2023. According to data from the Ministry of Inclusion, Social Security, and Migrations, this elevation will mark the first time the average pension surpasses 1,000 euros per month for retirement across all provinces in the country. The national average contributory pension stands at 1,430.09 euros per month, 127 euros more than what retirees in Málaga will receive.

Málaga’s Position in the National and Andalusian Context:

With these figures, Málaga ranks thirty-fourth among the 51 Spanish provinces. Bizkaia leads the ranking with an average contributory pension of 1,784.66 euros, while Ourense closes the list with 1,021.15 euros, having recently surpassed the symbolic figure of a thousand euros in gross pension due to the approved 3.8% increase.

In the Andalusian context, Málaga holds the fourth position after Cádiz (1,468.30 euros), Sevilla (1,343.39 euros), and Huelva (1,319.07 euros). Almería concludes the statistics with 1,168.69 euros. Málaga slightly exceeds the Andalusian average of 1,290.81 euros.

Andalucía stands as the fourth-lowest autonomous community in pension payments, trailing behind Murcia (1,280.09 euros), Galicia (1,216.69 euros), and Extremadura (1,195.05 euros) in this ranking of communities with lower retirement incomes.

Changes in Retirement Age and Conditions in 2024:

In 2024, significant changes will occur regarding contributions, pensions, and benefits. The legal retirement age will increase by two months compared to 2023, reaching 66 years and 6 months for those with less than 38 years of contributions. Those with 38 or more years of contributions can retire at 65.

Additionally, the minimum age for voluntary early retirement will be delayed by 24 months (2 years) before the ordinary legal age. In 2024, one can access voluntary early retirement at the age of 64 years and 6 months with fewer than 38 years of contributions or at 63 years with 38 or more years of contributions.

The minimum age for partial retirement with a replacement contract will be 64 years with 33 or more years of contributions or 62 years and 6 months with 36 or more years of contributions at the time of access. The age for partial retirement without a replacement contract will be the same as the ordinary legal retirement age.

Pension Calculation and Other Considerations:

Starting in 2024, there will be a progressive increase above the CPI in the maximum contribution base, a crucial element for pension calculation. This base will increase each year until 2050 by a percentage equal to the pension revaluation (according to the average year-on-year CPI), plus an additional annual increase of 1.2 percentage points.

The base maximum contribution, considering a 3.8% average year-on-year inflation from December 2022 to November 2023, will increase by 5% in 2024, reaching 4,720.28 euros per month (56,643.30 euros annually).

Non-Contributory Pensions and Additional Measures:

Non-contributory pensions will see a 6.9% increase, and widows with dependents under 26 will experience a 14.1% growth in their pensions. Minimum pensions will be revalued between 5% and 7% in 2024. The minimum pension for total permanent disability will rise to 794.5 euros per month, while that for major disability will remain at 1,191 euros per month. The Minimum Vital Income (IMV) will increase by 6.9% in 2024, aligning with the non-contributory pensions.

In 2024, the additional increase in the gender gap supplement will take effect, reaching 18,962 euros in Málaga. This supplement will increase by 10% in 2024 (and another 10% in 2025), in addition to the annual revaluation based on the CPI. Considering the average year-on-year CPI increase (December 2022 to November 2023) of 3.8%, plus the 10% additional increase, the gender gap supplement in 2024 will be 34.71 euros per month per child (compared to 30.40 euros in 2023), up to a maximum of 4 times that amount.

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