The retirement pension is the most paid level of all the contributory levels managed by Social Security. It is the benefit that replaces the salary when a worker retires and is therefore a primary issue in the lives of the vast majority of citizens.
Among the thoughts that torment workers during their working life, a very important thought always appears: that of amount of your future retirement pension. And it’s no wonder: with this pension, they will have to cover all their life expenses when they move from worker to retiree.
In Spain, the amount of the pension It depends on the quotes that the worker has accumulated during his working life: the normal thing is that the higher the contributions, the higher the amount of the pension, even if the citizen also depends on the contribution bases that he has had during his career.
However, it is common for workers to wonder how much their retirement pension will be based on their years of work. For example: how much pension will I receive with 20 years of contributions?
How much pension is received with 20 years of contributions?
As in all cases, you must use the Social Security retirement pension calculation method, which takes into account both the years of contributions and the contribution bases for which these years were contributed.
The first thing to do is calculate the regulatory basisfor which you must add the contribution bases of the 25 years preceding the pension application, then divide this result by 350. For the calculation, you must take into account two aspects:
- That Social Security applies coefficients to the bases (except those of the last two years) to reflect the effect of inflation on them.
- That workers can benefit from the integration of gaps by which periods without contributions are filled by fictitious bases, between 100% and 50% of the minimum contribution base in force at a given time. It is not valid for self-employed workers or domestic workers.
Once the regulatory basis has been calculated, the second and final step is to know what percentage of the regulatory base to which the worker is entitled, that is, what the amount of the pension will be. The longer the duration indicated, the higher the percentage. The percentages are set out in Article 210 of the General Social Security Law (available at this link) and are as follows:
- With 15 years of contributions, the minimum required to receive a contributory retirement pension, 50% of the regulatory base is reached.
- For each of the following 49 months of contributions, a supplement of 0.21% of the regulatory base is guaranteed.
- For each of the following 209 months of contributions, a supplement of 0.19% of the regulatory base is guaranteed.
Based on these keys, a person who has contributed for 20 years will be entitled to 62.38% of the regulatory base.
In addition, working women (in most cases, this is granted to them) with children are recognized as having the right to supplement to reduce the gender gap in pensions, which in 2024 is 33.20 euros per month per childwith a maximum of four children.
At what age can you retire with 20 years of contributions?
In addition to the amount of the pension, another of the most recurring questions for workers is the age at which they will be able to retire. And as in the previous case, quotes matter here toowhich determine a worker’s retirement age.
In Spain, there are two different retirement ages since the implementation of the 2011 pension reform. As stated in Law 27/2011 of August 1 (available at this link), the retirement ages for 2024 are as follows:
- 65 years for people who have contributed for 38 years or more.
- 66 years and six months for people who have contributed for less than 38 years.
Thus, people with 20 years of contributions They will have to wait until 66 years and six months to retire in 2024.. With this contribution, moreover, they will not be entitled to either of the two main types of early retirement (voluntary retirement requires 35 years of contributions and involuntary retirement 33 years).
