More than 9.4 million retirees will see their pensions revalued in 2026 thanks to the update approved by the Government. The adjustment is not a discretionary decision, but obeys the provisions of
2.7% increase in line with CPI
According to the latest data provided by the Government, contributory pensions will be revalued by 2.7% across the board. This figure has been calculated in accordance with the definitive CPI data corresponding to November, as required by current regulations.
Law 21/2021 materializes a broad social and political pact that came to comply with the second Recommendation of the Toledo Pact, which advocated the “maintenance of purchasing power and improvement of pensions”. This legislation established that the revaluation should be adjusted to the average annual CPI between December of the previous year and November of the current year.
This automatic updating mechanism has been key to ensuring that pensioners’ incomes are not eroded by inflation, which is especially relevant in periods of generalized price increases.
How much does this revaluation represent?
The 2.7% increase will have concrete and palpable effects on pensioners’ pockets. For an average retirement pension, the annual increase means approximately 570 additional euros per year. In monthly terms, a pensioner receiving the average retirement pension in 2025(1,511.51 euros per month) will receive 1,552.32 euros per month in 2026, which translates into 571.35 euros more over the year.
Beyond retirement pensions, this increase will also benefit the 734,900 pensions of the State Pension System, which will be revalued according to the same index.
In addition, the system’s average pensions (which include other types of benefits in addition to retirement) will increase by around 500 euros per year, reflecting a positive impact beyond a specific group of beneficiaries.
Who benefits from the increase?
The revaluation will be applied to the 10.4 million contributory pensions of the Social Security system. This includes retirement benefits, but also other contributory pensions such as those for permanent disability, widowhood, orphanhood or in favor of family members, as long as they are subject to the general system.
More than 9.4 million people who receive these pensions will directly see their income increase as of January 1, 2026. As this measure is based on the evolution of the CPI, the law seeks to prevent inflation from eroding the purchasing power of those who depend on these benefits for their daily lives.
Why is revaluation calculated in this way?
The formula used to calculate this revaluation is the one established by Law 21/2021, which in addition to setting the purchasing power guarantee, contemplates other measures to reinforce the sustainability of the public pension system. This law was the result of an agreement between the Government and the social partners to ensure that pensions do not lose value over time, especially in economic contexts where inflation is significant.
Specifically, the revaluation is based on the average year-on-year CPI between December and November of each year. In this way, it seeks to faithfully reflect the general increase in prices experienced by society as a whole.
This mechanism provides that, if prices rise, pensions will be adjusted in the same proportion, thus avoiding any loss of purchasing power for pensioners. The forecast of a 2.7% increase for 2026 responds precisely to this variation in the CPI measured between December 2024 and November 2025.
When will the increase be charged?
Although the revaluation is applied as of January 1, 2026, pensioners will begin to receive the increase in the monthly pensions collected as of that date. This means that, from the first paycheck of 2026, retirees and recipients of other contributory pensions will see the 2.7% increase reflected in their accounts.
For those who receive their payments on time at the beginning of each month, it will be in January 2026 when the effect of the approved increase will be felt for the first time.
Positive impact for millions of people
The revaluation of pensions is important news for millions of pensioners who depend on these benefits as their main source of income. With an increase of around hundreds of euros per year for the average pension, the aim is not only to protect the purchasing power of retirees, but also to ensure that the pension system remains dignified and sustainable.
The application of the 2.7% agreed for 2026 offers relief in an economic context that has seen significant price variations in recent years. For many pensioners, especially those with benefits close to the average, this adjustment will make their monthly budget somewhat more comfortable and their income will keep pace with general inflation.
