2023-10-14 13:20:35
Delaying retirement can offer a series of economic advantages for those who choose this option. Currently, in Spain, the retirement age is set at 66 years and 4 months for most workers, although those with more than 37 years and 9 months of contributions can retire at age 65. This retirement age will continue to increase in the coming years to guarantee the sustainability of the public pension system.
The increase in life expectancy, together with the decrease in the birth rate, has led to a situation in which there are more and more retirees and fewer taxpayers, which has caused changes in the system. In response, the retirement age will be progressively raised to 67 in 2027. However, those who can demonstrate a complete contributory career will still be able to retire at 65. Given this perspective, Social Security has identified three benefits that citizens will obtain by delaying their retirement, and we explain how much money you can receive by doing so.
In January of last year, one of the latest retirement-related reforms in Spain was launched, which established various benefits and improvements for those who chose to delay their retirement. One of the main objectives was to guarantee the purchasing power of pensioners. To achieve this, Social Security introduced a new option: delayed retirement. This modality allows workers, both self-employed and employed, to extend their working life beyond the ordinary retirement age and enjoy additional benefits in their future benefits.
Three benefits of delaying retirement: First, they receive a financial supplement to their pension, which can take one of two forms from January 2022. The first option offers a 4% increase in the pension for each full year of contributions after reach ordinary retirement age. The second option provides a single payment for each year of additional contributions, and the amount varies depending on the number of years of contributions at the ordinary retirement age. This additional sum ranges between 5,000 and 12,000 euros and is paid at the time of final retirement.
Another benefit that came into effect in May is that workers are allowed to opt for a mixed formula that combines the two benefits mentioned above. This modality is not retroactive and is calculated based on the years that the worker can extend his or her working life. Those with a contribution period of 2 to 10 additional years between the ordinary retirement age and the effective retirement date will receive a supplement based on an additional percentage of 4% for each year of the middle of that period, considering the lower number as a full year. In addition, they will receive a single payment for the rest of the period considered.
Requirements and Request for Delayed Retirement: Having contributed at least 15 years to Social Security and having reached the minimum ordinary retirement age for the current year. If these requirements are met, it is important to note that there is no age limit for delayed retirement. Unlike the mistaken belief that you can only enjoy this option until age 70, Social Security does not impose an age limit for delayed retirement.
#valuable #benefits #delaying #retirement