2024-01-18 14:10:30
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Anyone who intends to advance their transition to pension status to 2024 must know the necessary requirements to access early retirement. The amount of future compensation is essential to decide whether it is worth retiring before the normal retirement age.
It must be taken into account that this year Social Security has increased both the contribution period and the age to access retirement, tightening the requirements to advance the pension.
Prior information is essential. Proof of this is that, according to government data, since 2021, the number of pensioners who have suffered reduction coefficients due to anticipation of their retirement age has fallen by half while having 40 or more years of contributions. If that year there were 73,156 pensioners affected with significant reductions, until December 4, the number of pensioners with reduced early retirement was reduced to 36,977.
What is the legal age for ordinary retirement?
The legal ordinary retirement age has been increased in 2024 by two months compared to 2023, standing at 66 years and six months when there are less than 38 years of contributions. If the future pensioner has 38 or more years of contributions, he will be able to continue retiring at 65 years of age.
The legal ordinary retirement age increases every year during a transitional period that began in 2013 and will end in 2027 when the ordinary retirement age will be 67 years in the case of those who have contributed less than 38 years and six months, and 65 years if a contribution period of 38 years and six months or more.
What is the minimum quote?
To be able to access ordinary retirement, you must have contributed for at least 15 years, taking into account that two of them must be included in the 15 years prior to the event that causes you to become a pensioner.
With these minimum years of contributions, you will be entitled to 50% of the regulatory base. For those people who access retirement in 2024 and intend to be entitled to 100% of the regulatory base, it will be necessary to have contributed for at least 36 years and 6 months.
What is the minimum age for early retirement?
Voluntary early retirement is possible if requested up to a maximum of 24 months before the ordinary legal retirement age.
Therefore, to qualify for voluntary early retirement in 2024, you must be at least 64 years and six months old if you have less than 38 years of contributions or 63 years if you have contributed at least 38 years.
In the case of involuntary or forced early retirement, it is possible to retire up to four years before the ordinary legal age and occurs when the employment relationship is terminated without the worker’s voluntariness, generally due to dismissal. It is only available to self-employed workers. The self-employed will not be able to access this modality and will only be able to access voluntary early retirement.
They will be able to access forced retirement those who have been laid off due to Employment Regulation File (ERE) due to economic, technical, organizational and production causes; for an objective dismissal based on article 52 of the Workers’ Statute (ET); for the termination of the contract by judicial resolution in the cases contemplated in the Bankruptcy Law; for the termination of the contract due to force majeure; due to the death, retirement or disability of the employer or due to the extinction of the legal personality of the company or when the worker is a victim of gender violence and this motivates her to leave her job.
How many years of contributions are needed?
It is necessary to have contributed for at least 35 years to qualify. voluntary early retirement. Of these, at least two must be included in the last 15 years prior to the day the work activity ceases.
To access the involuntary early retirement It is necessary to have contributed for at least 33 years, of which two years of contributions must be included in the 15 years prior to the causative event.
The years of contributions, in both types of early retirement, are considered to be the period allocated to performing military service, substitute social benefit and female social service, with a maximum of one year.
In addition, it is necessary to be registered or in a situation equivalent to registration, such as the transfer of the worker by the company outside the national territory.
How is the early retirement pension calculated?
To calculate the retirement pension, three fundamental pieces of information must be taken into account: the regulatory base, the coefficients on the regulatory base based on the years of contributions and applying the reducing coefficients for voluntary early retirement.
The regulatory base is calculated taking into account the last 25 years of contributions prior to the end of employment, which correspond to the last 300 months. This figure will have to be divided by 350, since the contribution base is calculated based on 12 months and the pension is paid in 14 payments.
If within these 300 months there are contribution gaps, the first 48 will contribute with 100% of the minimum contribution base in force at that time. From the following periods onwards, contributions will be over 50% of the minimum base.
To the regulatory base thus obtained, the coefficients or percentages must be applied according to the years contributed to Social Security. Those who intend to be entitled to 100% of the regulatory base will need to have contributed for at least 36 years and six months.
In voluntary early retirement, one of the novelties of the pension reform is that reducing coefficients that are applied are monthly. Social Security reduces the amount of the payment depending on the number of months in which retirement is anticipated. Furthermore, these penalties are applied to the amount of the pension and not to its regulatory basis, as was the case before.
Therefore, the amount of the pension will be reduced by applying it—for each month or fraction of a month—that the worker is missing from reaching the legal retirement age (67 years or 65 years when 38 years and six months of contributions are accredited). , according to the percentages that result from the table of reducing coefficients (access the Social Security table here) depending on the credited contribution period and the months in advance.
In this way, the reduction of the pension for voluntary early retirement can be from 2.81% (in the best of cases) when retirement is anticipated one year and contributions have been made for 44 years and six months up to 21% ( in the worst case) for those who advance retirement by 24 months and have contributed less than 38 years and six months.
In involuntary or forced early retirement, the pension reduction may be reduced by 0.50% (in the best case scenario) if retirement is brought forward one month and contributions have been made for 44 years and six months, up to 30%. (in the worst case scenario) when the pension is advanced four years and less than 38 years and six months have been contributed.
The voluntary early retirement pension, resulting from applying the reduction coefficients for early retirement, must be higher than the amount of the minimum pension (access the amount here) that would correspond to the beneficiary of the pension upon turning 65. Which ranges from 14,466.20 euros per year if the person has a dependent spouse to 10,966.20 euros if the 65-year-old pensioner has a spouse but is not dependent. This requirement does not apply to involuntary early retirement.
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