A large part of the self-employed group resorts to a formula based on a fallacy. It is very common to hear more than one self-employed worker explain that he contributes for the minimum in order to increase the level of benefits and, thus, increase the amount saved for the end of his working life. This strategy is a serious mistake.
The retirement of the self-employed is designed to obtain a subsidy sufficient to live during the years after the activity. However, for this, it is necessary that the professional has carried out a correct contribution formula. Otherwise, the amount of the pension will be negligible and, in general, the money saved during working life is not enough and does not guarantee sufficient income for a long period.
For this reason, the best option is to increase the contribution base, so that the retirement pension is higher; in such a way that the self-employed reserve the minimum base for periods in which the business suffers a serious drop in billing or foresees that short-term income will fall drastically, which is what it is designed for.
Beware of always quoting for the minimum base
The minimum contribution base reaches 944.40 euros, which generates the lowest pension. However, it should be remembered that another of the strategies that many freelancers consider is also a big mistake.
A large number of professionals believe that there will always be time to improve the amount quoted. However, this part of the collective is not aware that they can only change the base freely until they are 47 years old, after which there are restrictions.
Only the self-employed over 41 years of age in 2021, who have a contribution base of 2,052 euros in the month of December 2020, will be able to maintain that freedom of choice. On the contrary, those who are below that limit will not be able to choose a base higher than 2,077.80 euros.
How many years do I have to contribute to obtain the minimum base?
The minimum to get a pension is to have contributed for 15 years. However, the amount that the self-employed person will receive for this level of contribution will be negligible. Therefore, the professional must carry out his activity for more years to obtain a minimally interesting retirement
In this sense, the section increases up to 20 years if the self-employed person wants to collect 50% of the pension, and at 36 years if he intends to receive 100% of the benefit.
How much will I receive for the minimum pension?
If the self-employed person has only contributed for the minimum base during this minimum period of 15 years, they will only receive 226 euros per month. A figure that amounts to 561 euros if it is quoted for at least 20 years. Finally, the retirement pension reaches 789 euros if the calculation grows at 36 years.
Facebook Comments
Disqus