Early retirement can be an alternative for those workers who want to end their working lives and move on to a deserved retirement after decades of service for a company or on their own. In some cases, this advance payment of retirement can be given at 63 years of age, although for this it is necessary to be under specific assumptions and meet specific conditions.
If early retirement is voluntary, in order for workers to benefit from it at the age of 63, they must be at least 37 years old and have contributed three months. It is the period of contribution required to have a retirement age of 65 years (), and since the maximum period of advance is two years in this type of early retirement, the worker would pay the bills.
With less time quoted, the worker would have no other option but to wait. In 2022, moreover: it becomes 66 years and two months if the contribution milestone is not reached for 37 years and six months (it remains at 65 years if that contribution milestone is met).
However, reaching that contribution requirement is not the only condition to be able to retire early at age 63. You must also demonstrate that you have contributed for a minimum of two years within the last 15 prior to applying for retirement and be registered with Social Security (or in a similar situation), as well as get a pension greater than (or 50% of the regulatory base).
These are the cuts in their pensions
Retiring early has a counterpart, the reduction in the amount of the retirement pension, which will be reduced with the application of reduction coefficients that depend on the worker’s previous contribution and which are the following during 2021:
-2% of the regulatory base for each quarter of retirement advance in careers of less than 38 years and six months.
-1.875% of the regulatory base for each quarter of early retirement for careers between 38 years and six months and 41 years and six months.
-1.75% of the regulatory base for each quarter of early retirement for careers between 41 years and six months and 44 years and six months.
-1.625% of the regulatory base for each quarter of retirement advance for careers lasting more than 44 years and six months.
As of 2022, people who are 63 years old and wish to retire early will do so with different reduction coefficients. The one devised by the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has modified them to encourage later withdrawals.
These coefficients, which will become monthly and applicable to the amount of the pension instead of quarterly and applicable on the regulatory basis, in the middle sections of the table (in early retirements of between 13 and 19 months in advance) and for retirements late anticipated (one to three months before the ordinary age) and early (23 and 24 months in advance).
It may be the case that, at the age of 63, early retirement comes as a result of an involuntary dismissal from the company where you work. This is what is known as involuntary retirement and allows advances in retirement up to four years before the ordinary retirement age.
In order for the worker to benefit from it, they must have contributed for at least 33 years (two of them in the last 15), be registered with Social Security, be registered for at least three months and that the dismissal is a consequence of a situation of “corporate restructuring”.
This type of early retirement also has as a counterpart the application of reducing coefficients that reduce the pension to compensate for the advance. They are the following:
-1.875% of the regulatory base for each quarter of early retirement for careers of less than 38 years and six months.
-1.75% of the regulatory base for each quarter of retirement advance for careers between 38 years and six months and 41 years and six months.
-1.625% of the regulatory base for each quarter of early retirement for careers between 41 years and six months and 44 years and six months.
-1.5% of the regulatory base for each quarter of retirement advance for careers of more than 44 years and six months.
Like voluntary early retirement, this involuntary modality will be modified by the ‘Escrivá reform’. The coefficients will be modified to encourage these withdrawals at later ages and, in cases where the voluntary early retirement coefficients are more beneficial, retirees will be able to take advantage of them.
Another of the criteria for retiring at 63 years of age may be that of the profession performed. Certain professions contemplate special early retirement (with individualized reduction coefficients) . This is the case of firefighters, miners, pilots and aerial work personnel, railway workers, local police, artists, bullfighters…
If the worker belongs to any of these professions, they will have to go to the specific regulations of said profession to find out under what conditions they can retire early. Be that as it may, none of them prohibits their workers from retiring at the age of 63 as long as they meet the rest of the criteria regardless of age. Social Security a list of these professionals and the legal texts that regulate their retirement.
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