# Spain's pension spending to hit €200bn by 2026 18 October 2026 at 18:48 > Spain faces rising costs as pension expenditure nears €200 billion, driven by an ageing population and inflation-linked revaluations. **Spain**'s contributory pension expenditure is projected to reach approximately 200,000 million euros by 2026, remaining the largest item in the consolidated budget. With over 9.5 million pensioners, the system faces a peak in spending by 2050 as baby boomers retire. Economy Minister **Carlos Cuerpo** oversees a system where **AIReF** has approved the first examinations of the 2021 reform. While the legal retirement age will hit 67 by 2027, the effective age is 65.4. Direct state transfers currently cover the **Social Security** deficit. **Fedea** estimates spending will rise by 5 percentage points of GDP, though the contributor-to-pensioner ratio has returned to 2.51. Measures like the Intergenerational Equity Mechanism aim to fund reserves as leaders commit to inflation-linked pension revaluations. [#Spain]() [#Pensions]() [#Economy]() [#SocialSecurity]() #FiscalPolicy ## Related news ## [Pensions to rise in December after elections]() 15 October 2026 at 10:23 ## [Spain to announce 2027 pension rise in November]() 10 October 2026 at 08:26 ## [Spain restores fuel subsidies via royal decree]() 30 September 2026 at 08:41 ## [Spain proposes new progressive retirement scale]() 25 September 2026 at 16:07 ## [Spain's pension sustainability to drop by 2050]() 22 September 2026 at 08:23