Spanish state pension rises by 3.5% on 2009

The average Spanish state pension for retirees rose to 877.12 euros a month at the beginning of February – an increase of 3.5 per cent in the past year.

According to the ministry of work and immigration, the average overall state pension – including those for disability, widows and widowers, orphans and retirees – reached 774.15 euros, which translates to a year-on-year rise of 3.4 per cent.

People in Spain are now paying a total of 6,667 million euros a year in social security payments towards their state retirement fund.

Some 8.6 million pensions are being paid out across the country.

Retirement pensions continue to be the highest of all monthly permanent benefits.

But plans are afoot to increase state pension age to 67 amid fears that the pot is running dry.