The contribution of workers throughout their years is key in terms of pensions. It not only serves as a requirement to access contributory benefits, but also determines the amount of pensions that workers will receive when they retire. That is why it is so important to be registered with Social Security at all times during our working career.
As always, the key resides in the . The last 25 years are especially important, since if you have not worked in any of them, it is very likely that the pension will be reduced in amount. The reason is that the contribution bases of those 300 months are taken (and divided by 350) to obtain the amount of the regulatory base.
Workers receive a small amount of help from Social Security: the integration of loopholes for which, in such a way that the minimum base in force at any time is added in the first 48 months and 50% of that minimum base in the months later. But not all workers can use it: the self-employed and domestic workers, for example, are prohibited from benefiting from the integration of loopholes.
Another small aid does come to the rescue of all workers: Social Security reflects the effect of inflation by applying a multiplier coefficient to the contribution bases for all years except the two prior to the request for retirement.
Thus, although there are certain tools that alleviate to a certain extent possible periods without contributing, the more years a person works, they may be entitled to a higher retirement pension in the future (of course, obviously, having contributed based on greater amount).
This premise is confirmed by the second part of the Social Security calculation method, which determines the percentage of the regulatory base to which a worker is entitled and which, in the end, is the final amount of the retirement pension that will be received in the future. . This is due to the fact that depending on the number of years of contributions (and even months) one is entitled to a specific percentage of the regulatory base: the more years worked, the higher the percentage of the regulatory base and, therefore, the greater the amount of the pension. of retirement.
The minimum to be able to collect a contributory retirement pension is 15 years, and this number of years of contributions gives the right to 50% of the regulatory base. From there, the percentages increase based on the time quoted: for each of the following 106 months, an extra 0.21% of the base is granted and for each of the following 146 months, an extra 0.19% is granted. .
How much pension do you have according to your years of contributions
Taking these keys as a reference, the retiree’s pension will be made up of the following percentages of his regulatory base depending on his level of years of contributions:
-With 16 years of contributions, the worker’s pension is 52.52% of the regulatory base.
-With 17 years of contributions, the worker’s pension is 55.04% of the regulatory base.
-With 18 years of contributions, the worker’s pension is 57.56% of the regulatory base.
-With 19 years of contributions, the worker’s pension is 60.08% of the regulatory base.
-With 20 years of contributions, the worker’s pension is 62.60% of the regulatory base.
-With 21 years of contributions, the worker’s pension is 65.12% of the regulatory base.
-With 22 years of contributions, the worker’s pension is 67.64% of the regulatory base.
-With 23 years of contributions, the worker’s pension is 70.16% of the regulatory base.
-With 24 years of contributions, the worker’s pension is 72.64% of the regulatory base.
-With 25 years of contributions, the worker’s pension is 74.92% of the regulatory base.
-With 26 years of contributions, the worker’s pension is 77.20% of the regulatory base.
-With 27 years of contributions, the worker’s pension is 79.48% of the regulatory base.
-With 28 years of contributions, the worker’s pension is 81.76% of the regulatory base.
-With 29 years of contributions, the worker’s pension is 84.04% of the regulatory base.
-With 30 years of contributions, the worker’s pension is 86.32% of the regulatory base.
-With 31 years of contributions, the worker’s pension is 88.60% of the regulatory base.
-With 32 years of contributions, the worker’s pension is 90.88% of the regulatory base.
-With 33 years of contributions, the worker’s pension is 93.16% of the regulatory base.
-With 34 years of contributions, the worker’s pension is 95.44% of the regulatory base.
-With 35 years of contributions, the worker’s pension is 97.72% of the regulatory base.
-With 36 years or more of contributions, the worker’s pension is 100% of the regulatory base.
How years of contributions influence early retirement
Despite this table, if the worker decides to take advantage of any of the early retirement modalities, he must know that he will suffer. It is a kind of compensation for that advancement of professional retirement, before the .
The cuts in the pension of these workers will be made through the reduction coefficients, which are monthly and are applied to the calculated amount of the pension. Even at this point, the years of contributions matter for the amount of the pension, since the regulations contemplate four different groups of coefficients in which the reductions are smaller as the contribution has been higher throughout the worker’s working life.
The new reduction coefficients can be consulted in Law 21/2021, of December 28, and depend on the type of early retirement, the time of advance payment and the years of contributions. They are the following:
-In voluntary early retirement (a maximum of two years in advance), coefficients are contemplated that go from 21% in the worst case to 2.86% in the most favorable case.
-In involuntary early retirement (derived from a non-voluntary cessation of work and with a maximum of four years in advance) the coefficients are up to 30% in the worst case and 0.50% in the event more favorable.
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