Major changes are coming to pensions in 2026, as the abolition of the personal difference will bring increases ranging from €12 to €55 monthly. Additionally, all retirees will receive an increase of at least 1.18%, while a €250 bonus is planned for low-income pensioners.
Read: Personal difference to be abolished by 2027: Which retirees benefit – See application example
Pension increases by income category
The monthly increases to be implemented vary according to pension amounts. Specifically, holders of very low pensions up to €500 will see an increase of €12 monthly, while higher pensions will receive up to €55 additional.
For medium pensions ranging between €1,300 and €1,700, increases will amount to €32-42 per month. According to the latest estimates, pensions up to €850 will increase by up to €20 monthly, medium ones of €1,300-1,500 by up to €35, and high ones by up to €70.
Personal difference and impact on retirees
The personal difference that mainly affects retirees from OAEE and ETAA will be gradually abolished. Retirees with personal difference, who were deprived of increases over the last three years (2023-2025), will receive 50% of the increase in 2026 and the full percentage from 2027.
The advantage for these retirees is that half the increase in 2026 will not be offset against the personal difference. From 2027, with the complete abolition of the personal difference, they will receive the entire increase.
Increase percentage and calculation for 2026
Based on current economic data, the pension increase for 2026 is estimated at 2.35%, calculated from the average change in GDP and inflation. This percentage will be finalized at year-end.
For example, a retiree with annual income of €14,000 and net monthly €1,080 will receive in January 2026:
• €263 from increase due to GDP and inflation
• €250 from November support
• €80 from income tax reduction
Total net amount will be €593, while with personal difference the amount reduces to €462.
€250 bonus for low-income pensioners
From November, an annual bonus of €250 will be paid to 1.44 million low-income pensioners. The bonus will be granted every November based on specific income and asset criteria.
However, there are strict limitations, including the age limit of 65 years, which excludes a significant portion of retirees. The annual cost of the measure amounts to €360 million.
Overall income support for retirees
From January 1, 2026, all retirees will have income enhancement, not only from taxation reduction but also from pension increases. No retiree will be left without an increase, with the minimum percentage reaching 1.18%.
On an annual basis, medium pensions will increase by €450, while high ones above €2,700 will receive an additional €780 annually. Increases will be scaled according to the personal difference amount and will reach 100% if the personal difference is up to €10 or zero.
