Average pensions rose to €1,251 in March a 5% increase compared to last year

In welcome news for retirees, the average pension within the Social Security system rose to €1,251.50 per month in March, marking a significant 5% increase compared to the previous year. This rise, attributed to the early-year revaluation, encompasses various pension categories, including retirement, permanent disability, widowhood, orphanhood, and in favour of relatives.

Comparing this figure to March 2019, before the pandemic, reveals a striking 27% growth in the average pension in Spain. This upward trajectory aligns with the implementation of Law 21/2021, which safeguards the purchasing power of pensioners.

Since March 2021, the average pension within the system has surged by an impressive 21.4%, largely driven by periodic adjustments in line with the Consumer Price Index (CPI) over the past three years.

The total monthly payout for contributory benefits within the Social Security system in March amounted to €12.7 billion, designated for ordinary monthly payments. Remarkably, this sum corresponds to 11.5% of the Gross Domestic Product (GDP) for March.

Breaking down the pension types, nearly 73.2% of the contributory pension disbursement, totalling €9.3 billion, is allocated to retirement pensions, as is customary. €2.1 billion is designated for widowhood pensions, while permanent disability benefits amount to €1.1 billion. Orphanhood pensions total €170.9 million, and those in favour of relatives add up to €33.8 million.

Among the 10.1 million contributory pensions disbursed, 6.5 million are retirement pensions, 2.4 million are widowhood pensions, and the remaining are distributed among permanent disability, orphanhood, and in favour of relatives. Notably, the number of pensions is growing at an annual rate of 1.2%.

March saw a total of 9.2 million pensioners, comprising 4.6 million men and 4.5 million women. The ratio of pensions remains steady at 1.1 per pensioner.

Of the 6.3 million individuals for whom retirement pensions are the primary source of income, 60% are men. Meanwhile, out of the 1.5 million individuals relying on widowhood pensions as their primary income source, a staggering 96% are women. Additionally, there are 940,547 recipients of permanent disability pensions, 323,449 of orphanhood pensions, and 45,128 in favour of relatives.

As mentioned earlier, the average pension within the system stands at €1,251.50 per month, representing a 5% increase in the third month of the year.

Breaking down further, the average retirement pension amounts to €1,438.20. Across different regimes, the General Regime boasts the highest average retirement pension of €1,598.00 per month, while the lowest is observed in the Self-Employed Regime at €960.40.

March witnessed the average widowhood pension reach €894 per month. Out of the new enrolments in January and February (59,189), 61.7% were at standard retirement age (36,504), with 10.5% opting for deferred retirement, a notable increase from the 4.8% seen in 2019.