From 1 January 2026 the implementation of the new system for calculating the regulatory base for retirement pensions will begin, approved by Royal Decree-Law 2/2023, of 16 March, on urgent measures for the expansion of pensioners' rights, the reduction of the gender gap and the establishment of a new sustainability framework for the public pension system.
The fundamental change is the introduction of a dual system to determine the regulatory base, that is, the figure on which the percentage of years of contributions is applied to obtain the final amount of the retirement pension.
By taking a brief historical look, we can observe the evolution of this calculation:
- 1966: the calculation was based on the last 2 years (24 months) of contributions prior to retirement.
- 1985: the calculation period is extended to 8 years (96 months).
- 1997: It was progressively increased between 1997 and 2001 to 15 years (180 months).
- 2011: the extension was established, progressively until 2022, to 25 years (300 months).
- 2023: The new dual system is introduced, which will be implemented progressively from 2026 to 2044.
This new system seeks to protect workers with irregular work histories, allowing them to choose the method that benefits them most during the extended transition period.
The dual system: the end of the single model
The new thing about 2026 is that Social Security will automatically calculate the pension using two different methodsgranting the pensioner the amount that is most beneficial.
- The traditional method: The contribution bases are taken from the last 25 years (300 months) and are divided by 350.
- The new method: The last ones are taken 29 years of quotation, but with a key advantage: they are ruled out the 24 months (2 years) with the worst quotes. That is, The base is calculated on the 27 best years within the 29-year period.
progressive implementation
Although the law stipulates a 29-year period, implementation is gradual. In 2026, the period will not jump directly from 25 to 29 years. The calculation period will increase month by month.
In 2026, the first year of implementation, the expanded method will be in operation:
- The last ones will be taken 304 months (approximately 25,33 years).
- Excluding the 2 months of lower amount.
- The calculation will be performed on the 302 best bases which will be divided by 352,33 to obtain the regulatory base.
This progressive growth will continue until 2037, at which point the period will reach 348 months (29 years) with 24 months of discard.
The retirement age continues to rise
The regulatory base is half of the equation for calculating the retirement pension. The other half is the standard retirement age at which we can access 100% of that base.
In 2026, the standard retirement age will be raised again. rising two months compared to the previous year, following the transitional provisions established in the 2011 reform:
- Anyone who has paid into the system 38 years and 3 months or more: You will be able to retire at 65 years.
- Anyone who has paid into the system less than that period: will retire at 66 years and 10 months.
Contribution gaps. Protection against periods without contributions.
One of the most significant measures of the reform is the treatment of periods without contributions. The system of integration of gaps It allows filling in periods without contributions within the pension calculation period with fictitious contribution bases. From 2026, it expands the number of applicable contribution bases for certain groups.
- La general ruleFor employed workers: The first 48 months (4 years) without contributions are filled with the 100% of the minimum baseFrom month 49 onwards, they are filled with the 50% of the minimum base.
- Improvement for the women: If there are gaps, the first 60 months (5 years) are filled with 100% of the minimum base, and from 61 to 84 with the 80% of the minimum base. It is a positive action measure that seeks to reduce the gender gap in pensions and will be applied as long as it does not fall below 5%.
They will also be able to take advantage of men who meet the requirements of article 60.1.b) of the LGSSThat is, to demonstrate that their professional career was interrupted or reduced as a result of the birth or adoption of a child.
- Incorporation of the Self-EmployedFor the first time, the self-employed are allowed to fill in contribution gaps, albeit in a very limited way. 6 months after the cessation of activity.
Who benefits from the new system?
According to the Ministry of Inclusion and Social Security, it is estimated that the new 29-year system with exclusion will especially benefit two groups:
- Young people with precarious career beginnings: By allowing a broader calculation base, the impact of low initial wages is diluted.
- Workers "expelled" from the market: People who lose their jobs from the age of 55 and end their professional career with low salaries or a subsidy for those over 52 years of age.
Conversely, for workers with an upward career trajectory, the traditional formula will remain the most beneficial option. This option will remain in place until 2044, at which point the dual system will disappear, leaving the definitive 29-year model with 2 years of exclusion.
Conclusion
2026 marks the beginning of the transition to a more flexible system. The introduction of two different calculation methods adds a new layer of complexity, making planning more crucial than ever for anyone envisioning retirement in the near future.
Rosa Gálvez Sebastián
Labor Area Director
