In September, the Government distributed more than 6.5 million retirement pensions, with an average amount of 1,445 euros per month, according to data from the National Institute of Social Security (INSS). To access this pension, you must have contributed for at least 15 years, including two years immediately before applying. Currently, beneficiaries must have 66 years and 6 monthsor 65 years old if they have contributed for 38 years and 6 months or more. However, there is the possibility of early retirementwhich allows you to retire up to two years earlier, provided you meet certain conditions, such as having contributed for at least 35 years.
From 2025 they will be implemented changes to early retirementincluding an increase in the minimum age and new reducing coefficients. For example, the minimum age for those who are under 38 years and 3 months of contributions will increase to 64 years and 8 months. The reducing coefficients will also be adapted, increasing the penalty for early retirement. These changes aim to ensure the sustainability of the pension system in a context of increasing life expectancy.
Voluntary early retirement
In 2025, significant changes will be introduced to the conditions for early retirement, affecting both the minimum age of access and the reducing coefficients which will be applied to pensions. According to Social Security, any early retirement, whether voluntary or involuntary, will result in a reduction in the pension amount, which can vary between 0.50% and 30%. This adjustment will depend on several factors, such as the years of contributions and the time before the legal retirement age, as well as the nature of the retirement.
For next year, the legal retirement age It will be set at 66 years and 8 months. However, those who have contributed for at least 38 years and 3 months will be able to retire at 65. In the event of voluntary early retirement, which allows an advance of up to 24 months, the minimum age will be 63 years. For those who do not reach 38 years and 3 months of contributions, this age will be increased to 64 years and 8 months.
On the other hand, the involuntary early retirement offers the possibility of retiring up to 48 months before the ordinary age, which could allow certain workers to retire at 62 years and 8 months, or even at 61 if they have made sufficient contributions.
Reducing coefficients
From 2025, those who opt for voluntary early retirement will be faced with a system of reducing coefficients which will influence the amount of their pension. This reduction depends both on the years of contribution and the it’s time to bring retirement forward.
First, the reduction coefficient varies considerably depending on the worker’s professional background. For those who contributed less than 38 years and six monthsthe reduction will reach 21% if retirement is brought forward by two years. This means that if a worker is entitled to a pension of 2,000 euros per month, in the event of early retirement this amount would be reduced to 1,580 euros. On the other hand, if the worker contributed between 38 and 41 years and six months, the penalty is 19%, which gives rise to a pension of 1,620 euros in the same scenario.
The system also considers different discount rates for those who have accumulated between 41 and 44 years old and six months of contributionswho will face a 17% reduction if they bring forward their retirement by two years. Likewise, the system provides smaller reductions for those who decide to bring forward their retirement for a shorter period. For example, if a worker under 38 years and six months decides to retire one month earlier than planned, the reduction will be 3.26%. This allows beneficiaries to consider the possibility of early retirement without suffering drastic reductions in their pension. It is essential that workers carefully evaluate their employment situation and needs before opting for early retirement.
In conclusion, the early retirement system which will be implemented in 2025 introduces important changes aimed at balancing the sustainability of the pension system with the needs of workers. The reductions applied according to the years of contribution and the time in advance are crucial aspects that every retiree must take into account.
Jobs that allow you to retire at 52
On October 22, the Council of Ministers approved the emergency adoption of a royal decree which will modify the reducing coefficients for the early retirement in certain professions. This decree will come into force once an evaluation commission is created, which will include representatives from different ministries, as well as employers and unions.
Among the professions which already have this right are mining workersaircrew, railway workers, artists, firefighters and members of various police forces.
For a profession to be classified as at risk, a joint request from employer and union organizations will be required, which includes indicators on health and safety at worksuch as sick leave rates and disability cases. This request will be evaluated through several reports from different organizations linked to Social Security.
