The Canary Islands’ 341,699 pensioners are set to benefit from a 2.8% pension increase in 2025, as announced by the Ministry of Social Security (INSS) yesterday (Friday). This adjustment, aligned with the cost of living, aims to maintain the purchasing power of retirees and pensioners across the archipelago.
For an average retirement pension, the increase will result in approximately €600 more per year, while average system pensions will see an annual boost of around €500, according to the Ministry of Social Security.
Currently, the Canary Islands account for 367,110 pensions, a figure higher than the number of pensioners as some individuals receive multiple benefits. Retirement pensions remain the most common, totalling 208,969. These are followed by 83,443 widowhood pensions, 55,696 permanent disability pensions, 16,408 orphanhood pensions, and 2,594 family support pensions.
The 2.8% increase will provide tangible benefits for all pensioners. For those receiving the average retirement pension of €1,441 per month in 2024, their monthly income will rise to €1,481.35 in 2025, resulting in an annual growth of €564.87.
Although exact adjustments for minimum and non-contributory pensions have not yet been confirmed, these categories are expected to experience a higher-than-average increase. In 2024, these pensions rose by 6.9%, compared to the 3.8% applied to standard pensions, reflecting efforts to address inequalities among pensioners.
In addition to the revaluation, several reforms to the pension system will take effect in 2025. The legal retirement age will increase to 66 years and 8 months, except for individuals who have contributed for over 38 years and 3 months, allowing them to retire at 65. This change continues reforms initiated in 2011 to ensure the sustainability of the pension system. Meanwhile, the maximum contribution base will rise to nearly €5,000 per month (€60,000 annually), with the maximum pension increasing proportionally to around €3,300 per month.
Furthermore, the Intergenerational Equity Mechanism (MEI), an additional contribution designed to strengthen the system’s revenues, will continue to grow progressively until 2029.
These measures aim to provide financial stability and safeguard pensioners’ purchasing power in the face of rising living costs. For retirees in the Canary Islands, the changes offer both economic relief and a commitment to preserving their quality of life amid ongoing inflationary pressures.
