The main concern of workers is to know what impact their contributions accumulated throughout their working life will have on their future retirement pension. That is why every aspect is analyzed in detail, even drawing undesirable scenarios.
That’s why a common question asked by workers is how much will remain in their superannuation if they don’t reach a certain number of years. For example: What will be the retirement pension of a person who has not reached 25 years of contributions?
There is no single answer to this question, as different factors need to be taken into account. In addition, the pension of a person who has contributed for 10 years will not be the same as that of a person who reaches the age of 15. Likewise, the amount of the pension of two people who have contributed for at least 15 years (regardless of the total number of years) will not be the same either.
What pension do you receive if you have contributed for less than 15 years?
The first possible case is that of people who have not reached 15 years of contributions, since in this situation it will not be possible to receive the contributory retirement pension. For these workers, yes, there is the possibility of charging a non-contributory retirement pension.
As IMSERSO reports on its website, the non-contributory retirement pension is the one that guarantees all citizens over 65 years of age and in need of economic benefits, free medical-pharmaceutical assistance and complementary social services , even if no contribution has been made or has been paid. insufficiently paid to be entitled to a contributory pension.
A non-contributory retirement pension can be received provided that proof is provided. requirements:
-Be at least 65 years old.
-Have a residence of at least 10 years in Spain, two of which must take place immediately before retirement.
-Not have income greater than 6,784.54 euros per year. In case you live with more people, the income ceilings rise to 11,533.72 euros per year for two people (28,834.30 euros per year if you live with children or parents), to 16 282.90 euros per year for three people (40,707.25 euros if you live with several people). with parents or children) and 21,032.08 euros per year for four or more people (52,580.20 euros per year in the case of residence with children or parents).
How much pension do you receive if you have contributed for less than 15 years?
The amounts of these pensions remain the same as in 2022, since in the middle of last year they increased by 15% as a measure of support for the most vulnerable due to inflation and the economic effects of the war in Ukraine, an increase which has been extended for the whole of 2023. The quantities are therefore as follows:
-Generally speaking, the amount of the non-contributory retirement pension is 484.61 euros per month and 6,784.54 euros per year.
-The amount of the 25% pension is 121.15 euros per month and 1,696.14 euros per year.
If they match several beneficiaries of the same pension in the same cohabitation unit The amount of the non-contributory pension will be the following amount for each person:
-When two beneficiaries live together in the same family, the pension for each is 411.92 euros per month and 5,766.86 euros per year.
-When three or more beneficiaries live in the same family, the pension for each is 387.69 euros per month and 5,427.63 euros per year.
What pension do you receive if you have contributed for less than 25 years?
If the worker has reached 15 years of contributions, even if he does not reach 25 years of contributions, he will be able to receive the contributory retirement pensionbut when he reaches 66 years and four months (retirement age for people under 37 years and nine months of contributions) and provided that two of these 15 years of contributions took place during the preceding 15 years immediately.
How much pension do you receive if you have contributed for less than 25 years?
You must use the Social Security retirement pension calculation method, which takes into account the contribution bases for the last 25 years (300 bases) to divide them by 350 and thus obtain the pension amount. regulatory basis.
In this calculation, coefficients will be applied to all bases except those of the two previous years to reflect the effect of inflation and the integration of differences will be applied to fill fictitious bases between 100% and 50% of the periods of minimum basis. without contributions (which is not available for self-employed and domestic workers).
The worker has the right to percentage of regulatory base which depends on all the years you have worked in your professional life. With 15 years of contributions, 50% is guaranteed and for each of the following 49 months, 0.21% is granted, while for each of the following 209 months, an additional 0.19% is granted.
People who have contributed under 25 years of age will be entitled to the following percentages:
-The amount of the retirement pension with 15 years of contributions is 50% of the regulatory base.
-The amount of the retirement pension with 16 years of contributions is 52.52% of the regulatory base.
-The amount of the retirement pension with 17 years of contributions is 55.04% of the regulatory base.
-The amount of the retirement pension with 18 years of contributions is 57.56% of the regulatory base.
-The amount of the retirement pension with 19 years of contributions is 60.08% of the regulatory base.
-The amount of the retirement pension with 20 years of contributions is 62.38% of the regulatory base.
-The amount of the retirement pension with 21 years of contributions is 64.66% of the regulatory base.
-The amount of the retirement pension with 22 years of contributions is 66.94% of the regulatory base.
-The amount of the retirement pension with 23 years of contributions is 69.22% of the regulatory base.
-The amount of the retirement pension with 24 years of contributions is 71.50% of the regulatory base.
Minimum and maximum amounts of the retirement pension
If the amount of the pension is lower than the minimum amount of retirement pensions, the worker could benefit from the application of a minimum supplement which is added to the pensions which remain lower than the minimum amounts. words minimum amounts are as follows for 2023:
–People aged 65 or over: 966.20 euros per month (13,526.80 euros per year) for people with a dependent spouse, 783.10 euros per month (10,963.40 euros per year) for people without a spouse and 743.30 euros per month (10,406.20 euros per year) for people with a non-dependent spouse.
–People aged 65 or over with severe disabilities: 1,449.30 euros per month (20,290.20 euros per year) for people with a dependent spouse, 1,174.70 euros per month (16,445.80 euros per year) for people without a spouse and 1,115 euros per month (15,610 euros per year) for people without a spouse. dependent spouse.
–For people under 65: 905.90 euros per month (12,682.60 euros per year) for people with a dependent spouse, 732.60 euros per month (10,256.40 euros per year) for people without a spouse and 692.50 euros per month (9,695 euros per year) for people without a spouse. dependent spouse.
THE maximum pension amount The same applies to all contributory pensions in the social security system. For 2023, this amount is included in Royal Decree 1058/2022 of December 27 (available at this link in the Official State Gazette), which indicates that the maximum amount of pensions is 3,058.81 euros per month and 42,823.34 euros per year.
