The CPI recorded a year-on-year rate of 4.3% in August, according to the National Statistics Institute (INE). This figure joins those recorded since December 2025 and brings the average of the nine known rates included in the calculation to around 3.16%.
However, this percentage is still provisional. To determine the final pension increase, it will be necessary to wait for the inflation data for September, October and November, which will complete the calculation used to set the revaluation of pensions in 2027.
HOW THE 2027 PENSION INCREASE IS CALCULATED
The revaluation of contributory pensions is linked to price trends. Regulations establish that they must be updated based on the average of the year-on-year CPI rates for the 12 months preceding December of the previous year.
Therefore, the data from December 2025 through November 2026 will be used to calculate the increase for 2027.
By August, nine of those 12 figures are known. The year-on-year rates were 2.9% in December; 2.3% in January and February; 3.4% in March; 3.2% in April, May and June; 3.6% in July; and 4.3% in August. The average of these nine figures is approximately 3.16%.
The figures for September, October and November must be added before the final amount is known. For this reason, any calculation made now should be understood as an estimate, not as the percentage that will ultimately be applied.
HOW MUCH COULD PENSIONS RISE IN 2027
If the pension increase ultimately stands at around 3.15%, a €1,000 pension would rise by approximately €31.50 per month, reaching €1,031.50.
For the average retirement pension, which stood at €1,574.90 per month in August, the increase would be around €50 per payment, bringing it to approximately €1,625. These figures are indicative, as the final percentage will depend on the upcoming CPI data.
These amounts are intended only to illustrate the effect of a revaluation close to current levels. The actual figure will depend on the percentage ultimately resulting from the CPI calculation.
RETIREMENT, SURVIVORS', DISABILITY AND MINIMUM PENSIONS
The revaluation will affect contributory pensions, including retirement, permanent disability, survivors' and orphan's pensions, as well as the maximum pension.
Minimum and non-contributory pensions have specific improvement mechanisms, so some could rise above the general increase. These updates will also affect the Minimum Vital Income (IMV), whose amount is linked to non-contributory pensions.
WHEN THE FINAL INCREASE WILL BE KNOWN
The uncertainty will be resolved once the period used to calculate the revaluation has been completed. Inflation rates for September, October and November 2026 are still pending.
Once the November figure is known, the average for the 12-month period used as a reference to update contributory pensions can be calculated.
Based on the data available through August, the average currently stands at around 3.16%, although it may still change depending on price trends during the autumn.
The resulting percentage will determine how much contributory retirement, permanent disability, survivors' and orphan's pensions will increase from January 1, 2027. The specific rules applying to minimum and non-contributory pensions and the Minimum Vital Income must also be taken into account.
