Retiring in Spain? The pension rules changing in 2027 and what you need to check

If you are approaching retirement in Spain, 2027 is an important year to have on your radar. Changes to the Spanish pension system will affect when some people can retire, how long they need to have contributed to receive 100 per cent of their pension calculation, and how that pension can be worked out.

The good news is that you do not need to make a special application simply because the rules are changing.

But if you are due to receive a Spanish pension in the coming years, there is one thing worth doing now. Check exactly how many years and months of Social Security contributions are registered in your name.

That figure could make a considerable difference.

Spain’s retirement age reaches 67 in 2027

From 2027, Spain’s ordinary legal retirement age will be 67 for people who have contributed for less than 38 years and six months, a threshold confirmed by Spain’s Social Security.

However, anyone who has accumulated at least 38 years and six months of contributions will still be able to retire at 65.

This is not a sudden increase. Spain’s pension changes have been introduced gradually, with the retirement age increasing in stages since 2013 as part of the pension reform approved in 2011.

But 2027 marks the end of that gradual transition.

In simple terms, two people who are both 65 could face very different situations. One may be able to retire immediately, while the other may need to wait until 67, depending on their contribution history.

How long do you need to receive 100 per cent?

There is another important number to remember.

Until the end of 2026, 36 years and six months of contributions are required to receive 100 per cent of the regulatory base used to calculate a retirement pension.

From 2027, that rises to 37 years.

This does not mean that everyone needs 37 years of contributions to receive a Spanish pension. Rather, it is the contribution period required for 100 per cent of the regulatory base to apply.

For someone who is only a few months away from reaching that threshold, timing their retirement could therefore matter.

A new way of calculating Spanish pensions

The amount of time you have worked is not the only thing changing.

Spain began gradually introducing a new pension calculation system in 2026. Eventually, it will provide two possible ways of calculating the regulatory base.

Once the transition is completed in 2037, the system will allow a calculation based on the final 29 years of contributions while disregarding the 24 worst months, or the existing calculation based on the final 25 years.

The change is being introduced gradually rather than overnight.

In 2027, the new calculation will consider 308 months of contributions, equivalent to 25 years and eight months, while allowing four months to be excluded. The existing calculation using the final 25 years will continue to be available.

This could become particularly relevant for workers who have experienced periods of lower earnings during their careers.

What about early retirement?

The 2027 changes also affect people considering retiring before the ordinary retirement age.

For voluntary early retirement, people with fewer than 38 years and six months of contributions will be able to retire from 65. Those with at least 38 years and six months will be able to do so from 63.

For involuntary early retirement, the minimum ages will be 63 for people below the contribution threshold and 61 for those who have contributed for at least 38 years and six months.

Partial retirement with a replacement contract will also change. The relevant ages will be 64 for those with fewer than 38 years and six months of contributions and 62 for those who meet or exceed that contribution period.

Do you need to do anything now?

If you are already receiving a Spanish retirement pension, these changes do not mean you need to reapply simply because 2027 arrives.

For those approaching retirement, however, checking your Social Security contribution record is sensible.

You need to know how many years and months of contributions are officially registered because this can determine whether your ordinary retirement age is 65 or 67 and whether you have accumulated enough contributions for 100 per cent of your regulatory base.

This may be especially useful for foreign residents who have worked in Spain for part of their careers and want to understand what contribution history is recorded before reaching retirement.

Workers will also pay slightly more in 2027

Another change will appear before retirement, in Social Security contributions.

The Intergenerational Equity Mechanism, known as the MEI, will rise to 1 per cent in 2027.

Of that amount, 0.83 per cent will be paid by the employer and 0.17 per cent by the worker.

The additional contribution is designed to increase Social Security revenues as Spain faces greater expenditure from future retirements.

For anyone nearing retirement, however, the most useful number to check is much more personal. Find out exactly how many years and months you have contributed.

In 2027, those months could influence when you can finally retire and how your Spanish pension is calculated.