Early retirement is one of the dreams of workers who want to retire from active life to enjoy their retirement stage. Not everyone can do it, but there are certain citizens who, if they meet a series of requirements, can retire at 63 years of age.
To know who these workers are, you have to know the legislation on early retirement and the . The regulations establish that workers can retire up to two years before the ordinary age, which in 2021 is 65 years for citizens who have contributed for at least 37 years and three months. Therefore, it will be these people who have the option to retire at 63 years of age.
But they must not only have that minimum quoted period. essential to be able to retire early at that age. They are the following:
-Being registered with Social Security or in an assimilated situation.
-Have quoted for at least two years of the last 15 prior to the retirement request.
-The resulting pension must be higher than the one that would remain at 65 years of age.
What will be the amount of their pensions?
To find out the amount of the pension, you must go to , which takes into account the contribution bases of the last 24 years, a total of 288, an amount that is divided by 336. The resulting amount is the regulatory base.
Subsequently, the years worked must be taken into account to know what percentage of the regulatory base one is entitled to. It takes 15 years or 50% of the regulatory base, and from that moment on, 0.21% of the regulatory base is added for each of the first 106 months of contributions and 0.19% for each of the 146 following months. In accordance with these parameters, the worker must contribute for 36 years to be entitled to a pension in the amount of 100% of the regulatory base.
But for workers taking early retirement, the story doesn’t end there. As compensation for this early retirement, the system contemplates pension reduction coefficients that depend on the period of early retirement. This is a model with the intention that by the end of 2021 new monthly coefficients that directly affect the amount of the pension will be definitively approved.
For the moment, the coefficients have not changed: they are quarterly and affect the regulatory base. Workers who want to retire at 63 years of age are only affected by the coefficients for the first year in advance (the following would imply retirement at 64 years of age) and are as follows:
-For workers with less than 38 years of age and six months of contributions: retirement between 24 and 22 months in advance has a reduction coefficient of 16%, retirement between 21 and 19 months in advance has a coefficient of 14%, retirement between 18 and 16 months in advance has a coefficient of 12% and retirement between 15 and 13 months in advance has a coefficient of 10%.
-For workers between 38 years and six months up to 41 years and six months with contributions: if they retire between 24 and 22 months before the reduction is 15%, for advance payments of between 21 and 19 months the reduction is 13.1% , for advances of between 18 and 16 months it is 11.3% and for advances of between 15 and 13 months the reduction coefficient is 9.4%.
-For workers between 41 years and six months and 44 years and six months with contributions: if they anticipate their retirement between 24 and 22 months, the reduction coefficient is 14%, if the advance is between 21 and 19 months, the coefficient is 12 .3%, if the advance is between 18 and 16 months the coefficient is 10.5% and if the retirement comes between 15 and 13 months the coefficient is 8.8%.
-For workers over 44 years of age and six months of contributions: early retirements between 24 and 22 months have a reduction coefficient of 13%, those between 21 and 19 months have a coefficient of 11.4%, those between 18 and 16 months have a reduction coefficient of 9.8% and retirements between 15 and 13 months have a reduction coefficient of 8.1%.
However, the circumstance may arise that, after applying the reduction coefficients on the regulatory base, the resulting amount remains above (2,707.49 euros per month in 2021). This occurs in cases of high salaries of those workers who contribute above that maximum pension. For these people, Social Security establishes reductions of 0.5% per quarter in advance of the amount of the pension.
Minister Escrivá’s idea is to also modify these retirements with the pension reform and the rest of the voluntary retirements.
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