How much will someone earn who retires without having contributed for 25 years?

The size of the pension is perhaps the biggest unknown retirees face just before leaving their job, signing their pension and transitioning from employee to retiree status. This is normal: this service becomes, overnight, your main source of income and will remain so until the end of your days.

So, alongside the other big question (when will that retirement arrive), all workers are wondering how much the retirement pension will be. And this question, like so many others linked to pensions, finds its answer in the contribution.

This is the reason why everyone who wonders how much money they will receive in pension asks themselves this question by marking the years they have contributed throughout their professional life. Because, in practice, The more years of contributions, the more options there are to receive a larger retirement pension.

The key lies in the 2011 pension reform, which changed the system in force at the time and designed a progressive timetable to increase the number of years needed to receive 100% of the pension. All the details appear in the text of Law 27/2011 of August 1 (you can consult it at this link).

However, what the worker needs to know is that each case is unique. The situation of the future retiree in question must therefore be studied in detail and his contribution must be taken into account. For example: How much pension is left for a person who retires without having contributed for 25 years?.

In encompassing a whole range of possibilities, we must focus on two main scenarios: whether or not there is a contributory retirement pension, the one commonly called “retirement pension” and from which the majority of Spanish retirees benefit. The selection is made based on years of contribution.

How to retire with less than 15 years of contributions?

These people are not entitled to the contributory pension because they have not reached the 15 years of contributions required by the regulations, they therefore only have the possibility of receiving the non-contributory retirement pensionwhich “guarantees all citizens over 65 years of age and in need a financial benefit, free medical-pharmaceutical assistance and additional social services, even if they have not contributed or have contributed insufficiently to be entitled to a contributory pension. according to information published on the IMSERSO website.

This level of contribution below 15 years is not sufficient, because to benefit from the non-contributory pension, other essential conditions must be met:

• Be at least 65 years old.
• Residing in Spain for at least 10 years between the age of 16 and the pension accrual date. During all this time, at least two years must be given immediately before applying for a pension.
• Not have income greater than 7,250.60 euros per year. If you live with several people in the same cohabitation unit, the ceilings for the entire unit are 12,326.02 euros per year for two people (they rise to 30,815.05 euros per year if you live with children or parents), 17,401 euros per year for. three people (it amounts to 43,503.60 euros per year with parents or children) and 22,476.86 euros per year for four or more people (it is 56,192.15 euros per year if you live with children or parents).

Pension amount with less than 15 years of contributions

IMSERSO also lists on its website the amounts of the non-contributory retirement pension which are as follows:

• In general, the pension is 517.90 euros per month and 7,250.60 euros per year.
• The amount of the 25% pension is 129.48 euros per month and 1,812.65 euros per year.
• If two beneficiaries coincide in the same cohabitation unit, the amount for each of them is 440.22 euros per month and 6,163.01 euros per year.
• If three beneficiaries coincide in the same cohabitation unit, the amount for each of them is 414.32 euros per month and 5,800.48 euros per year.

How to retire with more than 15 years of contributions and less than 25?

In this case, the worker has the right to retire while receiving the contributory pension, provided that he also meets the following conditions, listed on the Social Security website:

• Reach the ordinary retirement age: in this case, it would be 66 years and six months in 2024.
• Access from a Social Security registration situation or a similar situation.
• Be up to date with your Social Security payments.

Pension amount with less than 25 years of contributions

It must be based on the method of calculating Social Security retirement pensions, which takes into account the years contributed by the worker throughout his working life and the contribution bases for which he has made corresponding contributions.

The first step is to calculate the regulatory basis of the worker, which is obtained by adding the contribution bases for the 300 months preceding retirement (i.e. a total of 25 years) and dividing this sum by 350. In the calculation, Social Security will apply coefficients to all bases except that of the last two years in order to reflect the effect of inflation and workers will be able to benefit from the integration of gaps to fill periods without contributions with fictitious bases of between 100% and 50% of the current minimum base, which is not available to self-employed and domestic workers.

Then it is necessary to calculate the regulatory base percentage this will constitute the retirement pension, which depends on the years of contribution of the worker. As shown in the ninth transitional provision of the general law on social security (available at this link in the Official Journal), different references are established:

• With 15 years of contributions, 50% of the regulatory base is guaranteed.
• For each of the next 49 months of contributions, you benefit from an additional 0.21%.
• For each of the next 209 months of contributions, you benefit from an additional 0.19%.

Taking this table into account, the pension amount options for people with less than 25 years of contributions are as follows:

• 50% of the regulatory base is allocated over 15 years of contributions.
• 52.52% of the regulatory base is allocated over 16 years of contributions.
• 55.04% of the regulatory base is collected with 17 years of contributions.
• 57.56% of the regulatory base is allocated over 18 years of contributions.
• 60.08% of the regulatory base is collected with 19 years of contributions.
• 62.38% of the regulatory base is allocated over 20 years of contributions.
• 64.66% of the regulatory base is collected with 21 years of contributions.
• 66.94% of the regulatory base is collected with 22 years of contributions.
• 69.22% of the regulatory base is collected with 23 years of contributions.
• 71.50% of the regulatory base is allocated over 24 years of contributions.

Furthermore, it is necessary to add to these amounts those corresponding to supplement to reduce the gender gap in pensions, which in 2024 is 33.20 euros per month per son or daughter, with a maximum of four. This supplement is mainly aimed at women, who are the main victims of interruptions in contributions due to maternity.

Minimum amount of retirement pensions

Taking into account everything that has been explained previously, it is also important to consider that minimum amounts are envisaged for retirement pensions, amounts that the regulations guarantee to citizens and which depend on their different situations. According to the information published by Social Security on its website, these amounts are as follows:

• The minimum amount is 1,030.30 euros per month (14,466.20 euros per year) for holders with a dependent spouse, 825.20 euros per month (11,552.80 euros per year) for people without a spouse and 783.30 euros per month (10,966.20 euros per year) for people with a non-dependent spouse.
• The minimum amount for people under 65 is 1,030.30 euros per month (14,466.20 euros per year) for holders with a dependent spouse, 772 euros per month (10,808 euros per year) for people without a spouse and 729.70 euros per month. (10,215.80 euros per year) for people with a non-dependent spouse.
• The minimum amount for people aged 65 or over who are seriously disabled is 1,549.90 euros per month (21,698.60 euros per year) for holders with a dependent spouse, 1,237.80 euros per month (17,329 .20 euros per year) for people without a spouse and 1,174.90. euros per month (16,448.60 euros per year) for people with a non-dependent spouse.

Maximum amount of retirement pensions

Likewise, the amount of retirement pensions is “higher” and there is a maximum amount which applies to all contributory pensions in the system. In 2024, and in accordance with Royal Decree-Law 8/2023 (you can consult it at this link) “the maximum ceiling established for obtaining public pensions from the social security system and passive classes in 2024 will be 3,175.04 euros monthly or 44,450.56 euros annually“.