When will I be able to retire?

Are you thinking about retiring? How old do you think you can do it? Do you know what the retirement age is in Spain? The answer to these and other questions depends on two variables: age and the number of years of service. At DADES and SERVICES we want to solve all your doubts.

The retirement age in Spain is not always the same for everyone, as it can depend on many factors, such as the years worked throughout the working life, the professional group to which this person belongs or if there is any disability.

However, what does not change is the minimum contribution requirement to be able to access a contributory retirement pension. And that it remains established for a minimum of 15 years, two of which must be included in the 15 years prior to retirement.

As a general rule, for this year the age of access to one hundred percent of the retirement pension is 66 years and 4 months, if less than 37 years and 9 months have been contributed. Or at age 65 when more than 37 years and 9 months of contributions are proven.

However, this retirement age is being gradually increased, with the aim of reaching 67 years in 2027 if less than 38 years and 6 months have been contributed. And 65 years for those who have contributed more than 38 years and six months

Dual method for calculating the pension

On the other hand, the current regulations introduce a dual method for the calculation of the retirement pension. Workers will have to choose between the last 25 years of contributions or the last 29 years, from which they can exclude the two periods of lower performance. So, in this second scenario the final calculation will be based on 27 years.

Early retirement

There is also the option to retire early, up to 24 months before the ordinary legal age in case of voluntary early retirement. That is, from the age of 64 years and 4 months, depending on the credited contribution years. And up to 48 months earlier in the event of involuntary or forced early retirement. That is, from 62 years and 4 months, depending on the number of years contributed.

It is worth saying that this leads to a decrease in the amount of the pension through reducing coefficients for early retirements, whether voluntary or forced, which were modified in January 2022

Postpone the retirement age beyond the legal age

In this sense, you can choose between:

• An additional four percent for each full year contributed after reaching the ordinary age, which will increase the amount of the pension from month to month.
• An estimated amount per year contributed, which will depend on the years contributed when retirement age is reached. It is received at the time of retirement and is known as a lump sum check. The amount ranges between 5,000 and 12,000 euros per year delayed and, according to the latest data provided by Social Security, the average amount is around 20,000 euros.
• Or a combination of both.

And those who want to access partial retirement?

It may also be the case that there are workers who prefer to access partial retirement. In this case, there are two scenarios: that the company they work for makes a relief contract, or not. If he does not, the minimum age of access will be the ordinary retirement age that, in each case, is applicable.

If the company chooses to make a relief contract with which to cover the working time that the person who partially retires stops working, the minimum age to be able to access retirement is 62 years and four months (if have contributed for at least 35 years and nine months) or 63 years and eight months (if they have contributed for 33 years).

If you need more information, do not hesitate to contact DATA AND SERVICES