The pension reform planned by José Luis Escrivá, Minister of Inclusion, Social Security and Migration, still has different issues pending negotiation with the social agents but in other matters it has already been running for more than eight months. This is the case, for example, of early retirement.
In the first leg of the ‘Escrivá reform’, early retirement underwent a process of change. Specifically, to its reducing coefficients that apply the cuts in the pensions of workers who retire early with respect to the ordinary age. The objective from the outset was to try to align the real age and the effective retirement age in order to make the pension system more sustainable.
Based on this, the reduction coefficients were modified. First, in its structure: they became monthly (before they were quarterly) and applicable on the amount of the worker’s retirement pension (before they were applicable on the regulatory basis).
In addition, these changes were accompanied by a reorganization of the coefficients, whose cuts have been modified to contribute to this delay in the early retirement of workers. The idea is to promote ordinary retirements when the advance is very minor (increasing the cuts in those cases) and ordinary retirements in early advance tranches, favoring them over early retirements many months in advance.
These new reducing coefficients, which have been applied since January 1, leave early retirements that have benefited from the changes. They mainly affect average advance tranches, as can be seen from the tables published in Law 21/2021, of December 28 (can be consulted ).
In the case of voluntary early retirement, those that are carried out at the will of the worker himself and that allow advance payments of up to two years with respect to the retirement age, are the following:
Workers with less than 38 years and six months of contributions
The most favored early retirements are those made 16 months in advance, since the cut goes from 12% to 7.33%. They are followed by those made 19 and 13 months in advance, which go from 14% and 10% to 9.78% and 5.87%.
Workers from 38 years and six months to 41 years and six months of contributions
Early retirements 16 months in advance are once again the most benefited, since their cut drops from 11.3% to 7%. Below, pensions with 19 and 13 months in advance, which fell from 13.1% and 9.4% to 9.33% and 5.6%.
Workers from 41 years and six months to 44 years and six months of contributions
Also in this group of workers, the most benefited early retirements are those that take place 16 months before the ordinary retirement age, since they fall from a 10.5% cut to a 6.67%. After them, those that take place 13 months and 19 months before the ordinary age, since they go from 8.8% and 12.3% to 5.33% and 8.89%.
Workers over 44 years of age and six months of contributions
In this case, retirements 16 months in advance are also the most favored, since they range from 9.8% to 6.33%. Below are those of 13 and 19 months, which are reduced from 8.1% and 11.4% to 5.07% and 8.4%.
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