The government seeks to guarantee the sustainability of the pension systemwith the aim of reaching a balance of 9 billion euros in the reserve fund in 2024, and reaching 25 billion euros at the end of the legislature. To achieve this, it is crucial not only to maintain the current reform, but also to be attentive to possible fraud that affects the system. Even if the retirement pension is for life, if conditions change radically situation of the beneficiary who allowed its granting, could be revoked.
These are the most common causes of loss of pension: returning to work without informing Social Security, except in the event of flexible or partial retirement; the death of the owner, since the family must communicate this fact; falsify you hide relevant information when applying for a pension; and not respecting the obligation to provide certain data, such as proof of life for retirees living abroad. Failure to comply with these obligations may result in the suspension or permanent termination of the pension.
Retirement pension
Starting January 1, 2025, significant changes will be made to the minimum retirement age and the necessary years of contributions. For those who are over 38 years and 3 months of contributions, it will be possible to retire at 65, but those who do not reach this threshold will have to wait until 66 years and 8 months, which represents an increase of three months contribution requirements, i.e. two additional months of waiting compared to 2024.
In addition, it is expected that the contributory pensions will be revalued by 3.5% in 2025, based on an estimate of the CPI which will be around 3.5% by the end of 2024. The final data on the increase will be known in December 2024, when The National Institute of Statistics (INE) will publish November CPI figures.
THE pension reform in Spain It also includes adjustments to ensure the long-term durability of the system. Among the planned changes is the gradual increase in minimum pensions, which are expected to reach 16,500 euros per year in 2027, a notable increase from the current 13,500 euros.
In turn, the maximum contribution bases They will increase gradually, with the aim of increasing maximum pensions by 20% between 2051 and 2065. In 2024, the maximum pension is 44,450.56 euros per year, divided into 14 payments of 3,175.04 euros each. A 10% increase in the gender gap supplement is also envisaged in 2024 and 2025, which would be added to the annual increases according to the CPI.
Incompatibilities
The retirement pension is incompatible with any paid employmentwhether they are employees or self-employed, this implies inclusion in the general regime or in one of the special social security regimes, except in specific legally established situations.
It is also prohibited occupy positions in the public sectorwith a few exceptions, such as emeritus university professors and certified health personnel. In addition, senior civil servants cannot combine their pension with their work. If a retiree carries out unauthorized professional activities, his pension is suspended, as well as his access to health care linked to his retired status.
In these cases, the employer must register the worker with Social Security and pay the corresponding contributions. Additional contributions could increase pension percentageauthorize the receipt of supplements to prolong working life, or reduce the reduction coefficient in the event of early retirement, but they will never modify the regulatory basis.
However, there are exceptions allowing compatibility between retirement pension and certain professional activities. For example, retirees can work part-time, which results in a proportional reduction in pension, whether in the form of partial or flexible retirement.
They can also carry out their own activities, provided that the income does not exceed the Interprofessional Minimum Wage (SMI) annual. Furthermore, professionals registered in alternative mutual insurance companies, as well as those who keep a business, can continue to work without losing their pension.
For those who opt for active retirement, it is possible to make 50% of the pension compatible with employment, and in some cases, even 100% if they hire another worker. There is also a special regime for artistswho can receive their full pension while continuing to pursue artistic activities, both independent and salaried.
Calculation in 2025
In 2025, the calculation of the retirement pension will be based on the contribution bases of the last 25 years, by adding a total of 300 bases and dividing it by 350. Social security adjusts the previous bases to the last two years for inflation and allows the integration of deviations for cover periods without contributionswith the exception of self-employed workers and domestic workers. The final amount is determined by the percentage of the regulatory base, which varies depending on the years contributed. With 15 years of contributions you obtain 50%, and to reach 100% you need at least 36.5 years of contributions.
