2023-08-29 00:18:02
Tuesday, August 29, 2023, 00:18
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Last year, almost 4,500 people signed up for the delayed retirement incentive plan, a formula that allows those who opt for it to achieve 12,080 euros or an increase of an additional 4% for each year worked more. To these two possibilities is added a third, a mix of both, which, although it was provided for in the first pension reform package approved at the end of 2021, has not been formalized until this year.
Thus, currently, workers interested in continuing to work after the ordinary retirement age may choose between:
-Add to the pension that would correspond to us if we had retired at ordinary age an additional percentage of 4% for each full year of contributions thereafter. Those who opt for the additional percentage will see how it is added to the amount of the pension when they begin to collect it
-Collect, once retired, a lump sum per year of contributions. The total will depend on the time contributed both before and after reaching ordinary retirement age, but it can amount to 12,060. The established calculation formula is really very complicated (differently depending on whether or not 44 years and 6 months of contributions have been exceeded), but to see it, Social Security gives the following example. If someone with an initial pension of 2,000 euros chose to delay your retirement by two years, upon retirement and would receive 18,400 euros if they had contributed less than 44 and a half years and 20,000 if they had exceeded that threshold. If the initial pension were 1,600 euros, the payments would be 16,000 euros for those who do not reach 44 and a half years of contribution and 17,600 euros for those who do.
-Combine both formulas. Those who opt for this new formula and who delay their retirement between two and 10 years will simultaneously receive a 2% increase in their pension for each year that they delay access to retirement, and a single payment equivalent to half of what would correspond to them. if they opted for the current single payment formula. If it has been delayed for 11 years or more, the incentive will be a single payment applied to five years of the delayed period and an increase of 2% of the pension for each year of delay.
Requirements to access delayed retirement
There are three, and they must be met at the time of application:
-Having contributed at least 15 years to Social Security.
-Not having reached 70 years of age
-Reach the minimum ordinary retirement age for the current year.
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