Retirement is a key issue for workers, and it is not surprising: the retirement pension will be their source of income and will replace the salary they earn as employees of any company. That is why it is essential to calculate the amount that will be received each month.
In Spain, the amount of a contributory retirement pension depends on the years of contributions made by the worker throughout his working life. The spirit of the rule is clear: The longer the contribution period, the higher the retirement pension amount..
This is why it is common for workers, especially those approaching ordinary retirement age, to wonder what pension they will be entitled to based on their years of contributions. For example:What pension do I have left after 25 years of contributions??
The answer, as in all cases, lies in the method of calculating Social Security retirement pensions. This method takes into account both the number of years of contributions made by the worker and the contribution bases for which he makes them during this period.
The first step is to calculate the regulatory basiswhich upon retirement is obtained by adding the contribution bases of the previous 25 years (a total of 300 bases) and dividing this result by 350. For the calculation, two key elements must also be taken into account:
- That Social Security applies coefficients to all contribution bases (except those of the last two years) to reflect the effect of inflation on them.
- That workers (except self-employed workers and domestic workers) can benefit from the integration of gaps to fill periods without contributions with fictitious bases, between 100% and 50% of the minimum base.
Once we have the amount of the regulatory base, the next thing to do is to determine the percentage of the same thing to which we will be entitled and which will ultimately be the value of our retirement pension. Different percentages are attributed depending on the time cited:
- With the minimum contribution, 15 years, 50% of the regulatory base is granted.
- For each of the following 49 months of contributions, a supplement of 0.21% of the regulatory base is granted.
- For each of the following 209 months of contributions, a supplement of 0.19% of the regulatory base is granted.
According to these calculations, a person who has contributed for 25 years is entitled to a retirement pension equal to 73.78% of its regulatory base.
At the same time, women who work (in most cases, this is granted to them, since they are the ones affected by the reductions in contributions resulting from maternity) and who have children are granted the right to receive the 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 does a person who has contributed for 25 years retire?
The age at which a person can retire is another of the most repeated by workers and, again, it is answered thanks to their contribution. In Spain, there are two different retirement ages since the 2011 pension reform began to be implemented and, in accordance with what is stated in Law 27/2011 of August 1 (you can consult it at this link), for 2024, these are the two possible ages:
- 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.
So, people who have contributed for 25 years They will have to wait until 66 years and six months to retire in 2024.. In addition, they will not be eligible for either of the two main types of early retirement because they do not meet the necessary contribution (voluntary retirement requires 35 and involuntary retirement requires 33).
