Saturday. 23.09.2023

The Government of Spain has allowed a historic rise in pensions of 8.5% this year.

Said percentage is equivalent to the sum of the revaluations of the last four years and, for an average retirement pension, it represents an increase of 107 euros more per month.

One of the side effects of this increase is the updating of the maximum limits of the benefits offered by the Spanish Social Security. In this case, the 8.5% increase also reaches the maximum retirement pension, the amount of which grows from 2,819 euros per month (39,469 euros per year) in 2022 to 3,059 euros per month (42,829 euros per year) in 2023.

Requirements to receive the highest pension in Spain

In order to reach the pension limit, the aforementioned 3059 euros, there are several requirements that the worker must meet:

First of all, you have to take into account the salary: The amount of the payroll is the element that makes the difference between the pensions and allows calculating the amount to be collected. In general, the higher the payroll, the higher the volume of contributions paid to the Social Security institution.

Since nowadays the retirement pension is calculated based on the contribution level of the last 25 years, a pensioner will be able to receive the pension of 3,059 euros this year provided that in the last 25 years they have contributed for a base greater than or equal to the 42,829 euros.

This amount is the limit for the current maximum pension.

The retirement age

Another factor that influences the calculation to be able to collect 100% of the amount is to meet the legal retirement age. In 2023, this stands at 66 years and 4 months, and will gradually increase to 67 years, in compliance with the reform approved in 2011.

As mentioned, this stands at 66 years and four months in 2023. If the retirement occurs earlier, even if the amount of the salary allows the maximum to be reached, the recipient will be penalized for each month in advance. These penalties can reach up to 21% in extreme cases (two years in advance).

The amount of years worked

The amount of years worked. Although the Spanish Social Security calculates the pension from the last 25 years of contribution, this year (2023) 100% of the maximum pension will be received only if 36 years and 6 months of contributions are demonstrated (37 years in 2027, when the age of retirement reaches age 67). This is also gradually increasing until 2027.

As of 2027, a retiree who wants to access 100% of the pension by retiring at age 65 will be able to do so if he proves that he has contributed for 38 years and six months.

What are the conditions to receive the highest pension in Spain?