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What will be the rise in non-contributory pensions in 2024

Date: September 29, 2023 Time: 09:08:21

Non-contributory pensions are those received by people who have not contributed the minimum of 15 years to retire and collect the contributory pension. Like the rest of the pensions, the non-contributory retirement benefit is revalued every year. That is, it increases its amount so that retirees do not lose purchasing power.

Thanks to the pension reform resulting from Royal Decree 2/2023 of urgent measures to extend the rights of pensioners, non-contributory pensions will rise in 2024 above the average revaluation of pensions as a whole.

How much will non-contributory pensions go up?

The objective is that the amount of type of benefits, which are regulated by the Institute for the Elderly and Social Services (IMSERSO), is equal to 75% of the poverty threshold for a single person in 2027. This poverty threshold is calculated as the 60% of the median annual income per consumption unit.

Along these same lines, the minimum contributory pension aims to reach 60% of average income, which means reducing the current gap with that figure by about 20 points.

To achieve the goal set, the non-contributory pension will increase progressively from 2024 to 2027 and will do so by adding an additional amount to the revaluation of the pensions. Specifically, the Government estimates that the rise will cause a reason of 18.34% on average per year.

How much will be charged for non-contributory pensions in 2024?

In 2023 non-contributory pensions were revalued by 15%, almost double that of the rest of pensions, which added up to 8%. This left the non-contributory pension at 484.41 euros per month and 6,784.54 euros per year, since it is collected in 14 payments.

The Executive estimates that the amount of the contributory pension in 2024 will be 521.42 euros per month, which means 7,300 euros per year in 14 payments.

This amount will continue to increase year after year until 2027, when it will be equated to 75% of the poverty line. The Government itself has advanced how the non-contributory pension will rise over the next four years. This would be the development:

2024. The amount will be 521.42 euros per month or 7.3000 euros per year. The amount will be 542.85 euros per month or 7,599.9 euros per year.2026. The amount will be 564.28 euros per month or 7,900 euros per year.2027. The amount will be 592 euros per month or 8,250 euros per year.

Why do non-contributory pensions rise more in 2024?

Non-contributory pensions have a welfare nature, since they do not depend on the time contributed. They are those that are charged when you have not worked long enough to receive the contributory retirement pension.

In addition, they are intended for retirees who do not have financial resources. And it is that, to access it, you cannot have personal income that exceeds

In summary, that with the support of retirees in precarious situations, the Government understands that it is necessary to make an additional effort so that their living conditions improve and they come closer to a more acceptable state.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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