Active retirement: how to work while collecting your pension

The last Council of Ministers of 2024 approved Royal Decree-Law 11/2024 that reforms the different types of retirement: partial, active and delayed. Changes that will come into force next April with the intention that workers can exit the labor market in a more progressive and flexible way, in line with what is happening in countries around us.

On this occasion, in active retirement.

Active retirement: changes for 2025

  Active retirement is an option that allows you to combine your retirement pension with a job for a certain period of time. This employment can be either employed or self-employed.

The Government has now established a series of changes in the conditions of active retirement that partly modify those established until now:

• It will no longer be mandatory to have a full contribution period to access active retirement.
• Compatibility of active retirement with incentives for delaying retirement age is allowed.

  Requirements to access active retirement

• That one year has passed since the ordinary retirement age was reached. In 2025 it is set at 65 years if 38 years and three months or more have been contributed. Or 66 years and ten months if less have been contributed.
• Have contributed for enough years to receive the full retirement pension. In 2025, one hundred percent of the pension will be available after 38 years and three months or more of contributions.
• That the profession to be exercised is within the private sector. This possibility is not foreseen for the civil service.

Amounts and contributions during active retirement

While carrying out an employed or self-employed work activity that is compatible with the retirement pension, workers will continue to contribute to Social Security although not in the same way.

The contribution will be reduced and will only be effective when there is a temporary disability or due to professional contingencies, as well as nine percent as a special solidarity contribution, paid by the employer, seven percent and two percent for the worker. This type of solidarity contribution is understood as a contribution to the system without consideration, since a pension is being made compatible with income from work. When the work activity ends, one hundred percent of the initial pension is recovered.

How much can I earn with active retirement?

The amount of pension that will be received if you choose to retire with active retirement with a three-year delay is 50 percent of the full pension that corresponds to total retirement. With four years of delay in active retirement, you would receive 75 percent of the pension. With five years or more in active retirement, you will be entitled to receive one hundred percent of the pension. The amounts of retirement pensions are revalued year after year.

In any case, both workers and employers will contribute to Social Security for these activities, although this is a reduced contribution due to temporary disability and professional contingencies.

Active retirement for the self-employed