After pension reform, You can already get a better retirement for the self-employed, however, being something so new still, many people do not know how to know what the pension that corresponds to each person if you are self-employed.
What happens when a self-employed person reaches retirement age
When a self-employed person reaches retirement age, they normally receive a pension, however they are pension is a little lower than that of people who have been working in a social regime.
This pension is about 465 euros per month. The main reason for this is because the Most of the self-employed contribute under the minimum base in order to pay as little as possible during the listing throughout your life. This is something simple, the less amount you pay during your contributions, the less amount of money you will receive when it comes to collecting the pension.
Is it advisable to quote less?
This is a question that many have people who work as freelancers. It is true that if you quote as low as you can, throughout your life you will have to pay a very low amount, thus avoiding having to leave almost all your salary in the social security payments. It's a double-edged sword though, as once you get to the time to collect the pension, you have a low pension that many times you do not give to live on.
The key is to trade high for at least 15 to 25 years before retiring so that when it comes time to collect the pension we can have an appropriate amount that allows us to live comfortably.
How is the retirement system today
Since January 1, 2013 in which the last reform was made.
The conditions of this new retirement system for the self-employed are based on the following points.
• The retirement age of the self-employed must be set at 65 years and one month. It is believed that by 2017 the age will be 67.
• In the event that a self-employed person wants to take early retirement voluntarily, it can be requested at 63 years of age, but they must have at least 35 years of contributions.
• To access the minimum pension, you must have at least 15 years of contributions
• The amount that each self-employed worker receives will be based on the years of contributions and the amount of money each person paid.
How the pension can be calculated
After the reform, the new pension calculation system is based on the general generic rules that affect the rest of the workers.
- These are the things that should be considered to carry it out
- You can choose a full career with social security. It is accessed when 38 years and six months have been contributed to social security.
- You must know the minimum period for the quote
- The minimum number of years for you to contribute is 15 years and you can access the full pension for self-employed from the age of 35.
What is the amount of the pension
To know the total amount of money that we are going to collect, depends on the amount that has been paid month to month for the number of years it has been paid.
The scale taken into account to make this calculation is up to 50% if only 15 years have been listed and up to 0% to people who have contributed more than 36 years.
Does the contribution of the self-employed worker increase with age?
Many self-employed, in order to increase their earnings once they are retired increase the amount of pension payments after age 48. This will mean that in just 5 years, the pension that is going to be received can go from 445.91 euros to 501.44.
To obtain it maximum pension in social securityAfter the age of 42, each worker must pay monthly the amount of 500 to 600 euros per month and also have contributions for 30 years or more without interruption.
You can have the owning a business and collecting a pension
Another benefit of the reform is that the social security pension for the self-employed is perfectly compatible with the possibility of having a business ownership.
Make a self-calculation of the pension in retirement
To know what is the best way to calculate pension, social security has an online system that lets you know what your approximate pension will be. In this case, what you need is to put in all the data that it asks for, such as the periods of registration with social security and also the contribution bases that you have had in previous years.
How to get this information
In case you do not have this data, you can request this data by phone at social security or even check it online.
Promote active aging
In order to help people after their retirement, another measure that has been approved since 2013 is that people who receive a pension can make the pension compatible with an activity in which they charge at least 50% of the retirement. For this, the person must register as an active pensioner.
Who governs the amounts and amounts
The social security is the one in charge of establishing every year which are the lowest and highest limits of said pension. The minimum at the moment is set at 484 euros and the maximum at 3.600 euros; however each quote is different and there are several restrictions that can cause the amount to be lower or higher.
Final calculation
The first thing we must know is the salary that we have received during the last years of contribution. Since all the full pension will be calculated on this data. During the last 15 years of quoted work, an average of the salaries is taken to obtain an amount. This amount will not include extra payments and neither will any type of pay outside the salary. These figures will be updated based on the CPI.
Every year until 2027, the regulatory base will increase so it must be reviewed annually.
The calculation is this:
The number of contribution bases that the worker has had during the last 210 months is divided by 180. This symbolizes the last 15 years quoted for the last 24 months of the value of your payroll in euros.
Once it gives us a result, several more data will have to be applied that will reduce this amount. For example, for people who retire before the age of 65 or for people who have not contributed all the years that security asks for the full pension amount.
Assuming that the minimum number of years is 15 years and it is listed at 50%. At 20 years worked it will be 65%, at 25 years worked it will be 80%, at 30 years worked it will be 90% and at 35 onwards it will be 100%.
An example of this is for a person who has worked for 30 years (listed) with a salary of 1.000 euros, the final amount will be only 900 euros of pension, however, if you only contributed 15 years of your life, the amount is reduced to 500 euros.
You must bear in mind that each of these amounts are not fixed, so it is very important that you review them each year in order to know what the changes in the contribution base are, in addition to the increases in wages in companies. .
All freelancers can choose the type of contribution base Through which they will contribute, however, they must know them very well, since this is what will make them have benefits or not in case of disability or even make their pension more or less high on the day they have to collect it . The perfect age to increase your pension payment and to be able to have a greater amount of benefits is after 42.
By law, some limits are established as regards the base of the contribution amount of the self-employed and also to all the changes that can be made in it each year.
The only way to anticipate future problems and especially to plan for retirement is to see the amount, very close to the date on which we are going to retire due to the changes that are caused annually. Experts recommend that in order to have a pattern, the best option is to see it annually in order to know if we will need private pensions or not.