The amount of the retirement pension is a major issue for workers, as this benefit constitutes the main source of income once they retire and are no longer part of the working population. It is therefore normal, throughout their working life and particularly in the years preceding the ordinary retirement age, to make calculations and projections on the resulting amount.
In Spain, all questions regarding retirement pensions are related to the contribution of the worker, since these pensions are contributory, that is, they are based on the contributions (contributions) of the worker throughout his life. That is why it is normal to ask questions and make projections about it. For example: How much retirement pension am I entitled to if I contribute for 35 years?
To answer this question, we must go to the General Law of Social Security, which in its articles 209 and 210 explains how the retirement pension is calculated. The process, as explained in the text of the law (available at this link in the Official State Gazette), consists of two phases:
-THE regulatory basis It is obtained by adding the contribution bases of the last 25 years (300 bases) and dividing this sum by 350. Social Security applies coefficients to all bases except those of the last two years to reflect the effect of inflation and allows gaps to be included (except in the case of self-employed workers and domestic workers) to fill in periods without contributions with fictitious bases between 100% and 50% of the minimum base.
-Then you need to determine the percentage of the regulatory base to which one is entitled. It also depends on the contribution: 50% is paid during the first 15 years, an additional 0.21% for each of the following 49 months and an additional 0.19% for each of the following 209 months.
With these calculations, a person who has contributed for a total of 35 years would be entitled to a retirement pension of an amount equal to 96.58% of the regulatory base.
What pension do you get if you take early retirement with 35 years of contributions?
However, when a person reaches 35 years of contributions, he or she already has the right to benefit from early retirement, both in its voluntary modality (which allows up to two years) and in its involuntary modality (which allows advances of up to four years). . Of course, early retirement implies pension cuts.
These reductions are made on the amount of the pension once it has been calculated and depend on the chosen method, the advance payment period and the worker’s previous contribution. In accordance with Law 21/2021 of December 28 (available at this link in the Official State Gazette), the reductions for people who have contributed for 35 years are as follows:
–From 21% to 3.26% of the pension in the event of voluntary early retirement.
–From 30% to 0.63% of the pension in the event of involuntary early retirement.
