The year 2022 has been a year of changes in the Spanish pension system as a result of the entry into force of the first leg of the ‘Escrivá reform’, which has affected fields as diverse as the pension revaluation method, the delayed retirement or early retirement.
In this last matter, the reform was aimed at promoting the alignment of the real age and the effective retirement age or, what amounts to the same thing, making the idea of not taking advantage of certain early retirements or, at least, doing more The idea of retiring early but with shorter advances is seductive. All these efforts go in the same direction, such as the greatest benefits of delayed retirement: trying to get workers to retire later to make the pension system sustainable.
It is for all this that the ‘Escrivá reform’ brought with it a redesign of the reduction coefficients that are applied to the pensions of people who retire early and that, in practice, represent a kind of compensation for the advance with respect to the .
The first measure modified the nature of the coefficients themselves so that they became monthly (before the reform they were quarterly) and to be applied to the amount of the pension (before they were applied to the worker’s regulatory base, prior to calculating the retirement pension).
In parallel, the reductions made by these reduction coefficients have been modified. The changes are intended to favor (decreasing the reduction in pensions) early retirements in medium tranches and discouraging retirements with a greater number of months in advance.
The new reduction coefficients can be consulted in the one that collects all the changes of the first leg of the ‘Escrivá reform’ and depend on the years contributed by the worker throughout his working life. Four different groups of reductions are established based on the duration of the workers’ career and in each of these groups there are early retirements that have been especially benefited by the changes by presenting smaller reductions.
For workers with less than 38 years and six months of contributions
In this case, the most favored early retirement is the one that takes place 16 months before the ordinary retirement age, since its reduction goes from 12% to 7.33%. Later, the retirements that are made with 19 months (from 14% to 9.78%) and 13 months in advance (from 10% to 5.87%).
For workers between 38 years and six months and 41 years and six months
Retirements that take place 16 months in advance are also the most benefited, since their reduction is reduced from 11.3% to 7%. After them are pensions with 13 months (from 9.4% to 5.6%) and 19 months (from 13.1% to 9.33%).
For workers between 41 years and six months and 44 years and six months
Once again, the most rewarded early retirements with the changes are those made 16 months in advance, since their reduction drops from 10.5% to 6.67%. Below, the retirements that take place with advances of 13 months (from 8.8% to 5.33%) and 19 months (from 12.3% to 8.89%).
For workers with more than 44 years and six months of contributions
Once again, pensions with 16 months in advance are the ones that come out better after the reform because their reduction drops from 9.8% to 6.33%. After them, those that take place 13 months in advance (from 8.1% to 5.07%) and 19 months in advance (from 11.4% to 8.4%).