The new year has ushered in changes to the retirement age for workers in the Canary Islands. As of January 1st, 2025, the legal age for ordinary retirement has increased to 66 years and 8 months, marking a significant step in the gradual reforms introduced in 2013.
This adjustment, which applies across all Spanish regions, stems from the pension reform approved in 2011 under the government of José Luis Rodríguez Zapatero.
The reform was developed in collaboration with unions and employers' organisations to address the challenges posed by an ageing population.
Workers who have contributed for 38 years and 3 months or more will still be eligible to retire at 65 without penalties. However, those who do not meet this threshold must now wait until the new stipulated age to access their full pension entitlement.
Why the Change?
The reform introduced a gradual increase in the standard retirement age, which is set to rise from 65 in 2013 to 67 by 2027. Additionally, the period used to calculate pension entitlements was extended from 15 to 25 years, a transition completed in 2022.
This longer calculation period affects the pension amounts for many current workers.
Challenges in the Canary Islands
For the Canary Islands, where unemployment rates remain high and the population continues to age, the latest increase in retirement age poses unique challenges. Key sectors such as tourism and services often provide employment conditions that make it difficult for workers to achieve the long contribution histories required for earlier retirement.
The islands’ labour market faces additional strain from precarious work arrangements, which can limit opportunities for stable and continuous pension contributions.
Transitional Timetable
The transition to a retirement age of 67 by 2027 includes annual incremental increases. In 2025, the age stands at 66 years and 8 months for those with less than 38 years and 3 months of contributions. For workers seeking to retire at 65, the minimum contribution period remains 38 years and 3 months. Future increments are outlined as follows:
Adapting to a Changing System
The changes aim to ensure the sustainability of Spain’s pension system in the face of increasing life expectancy and demographic shifts. However, for regions like the Canary Islands, adapting to these requirements will be challenging, given the labour market’s limitations.
Canarian workers will need to plan their careers carefully, considering these new criteria and preparing for longer working lives. The reform highlights the importance of addressing systemic labour issues while ensuring fair opportunities for all to meet the revised requirements.
