The Public Pension System has the purpose of providing a safe and adequate income when there are causes that require it, such as old age or some disability. Because the system is also used to decide the differences in income due to the rights for which it was previously quoted, the Government sees the need to impose limits on Pensions, resulting in a minimum pension limit and a maximum pension limit.
Why limits are set, such as the maximum and minimum pension
The Government customarily sets these limits according to the Law of General State Budgets. In turn, it also establishes the Interprofessional Minimum Salary and the Public Indicator of Multiple Effects Income. In short, it takes care of establishing the limits of maximum pension and minimum pension of public pensions.
In December 2017, it was published the revaluation of pensions, for 2018 by 0.25%, which is the legal minimum that is established. We are talking about the fifth year in it, consecutively, pensions are going to rise that 0.25%, which according to the Annual Revaluation Index of pensions, which is stipulated in Law 23/2013, is the legal minimum established and takes into account income and expenses of the system, establishing the minimum increase of 0.25%, and a maximum of CPI, in addition to 0.50%.
The minimum of retirement pensions in 2018
Sometimes, the pension to which you are entitled is very low, it is when a minimum is defined, a lower limit to try to be sufficient to cover minimum expenses. The term used for this is a minimum complement and refers to the quotes made on the minimum pension and the denominated amount to which you are entitled. In order to receive this minimum supplement and to have access to the minimum pensions, it is necessary to be living in national territory.
The person who has the pension, that is, the pensioner has a defined minimum and minimum pension, in turn, due to their specific marital situation, and age is also a factor that is taken into account to establish the minimum pension limits, the age of the pensioner may or may not be less than 65 years.
The specific marital situation of the pensioner can be classified into one of these three variants:
- With non-dependent spouse
- With dependent spouse
- No spouse
The dependent spouse refers to whether the person who has a marital bond with the person who is a pensioner depends on him economically. This is understood when the person who lives with the pensioner is not also the holder of a pension Therefore, economic dependence encourages a total capital to which both can have access, taking into account any other income of any nature, is less than € 8.321,85 per year.
If that is the case, that the income of both parties is less than that amount, there is a supplement equal to the difference, distributed among the corresponding number of monthly payments. The minimum supplement charge is not allowed exceed the amount of the pension that would correspond when there are two beneficiaries entitled to a pension if there is a dependent spouse.
Retirement pension calculation
There are three fundamental factors that determine how much your retirement pension should be:
Total years of listing:
This is throughout the working life, since with 15 years of contributions, 50% of the Regulatory Base can be accessed (which will be explained below) and it is increasing until it is possible to access 100% of the Regulatory Base, at least 35 and a half years of contributions in 2018 (this factor is variable until 2027, then a minimum of 37 years of contributions will be required to reach 100% of the Regulatory Base.
Years anticipated:
It is possible to anticipate a certain number of years for our retirement, if we fear the possibility of accessing one of the modalities contemplated by the General Law of Social Security for Early Retirement.
Regulatory Basis:
This is the arithmetic mean that is updated with the variation of the CPI of the amount made by the Contribution Bases in a specific period of time: In 2018, 21 years before retirement, increasing until in 2022 it will be 25 years.
If a few years have been contributed to the system or the contribution history is for very low bases, taking into account more than 15 years for it to be possible to be entitled to a contributory retirement pension, there is a high probability that the quantitative of the pension per retirement, whether in excess, low. And on the other side, if the contributions have been very high and the retirement pension has been in contributions for many years, it will be quite high. So the System tries to ensure that there is a redistribution of income, so that very high pensions have a limit and very low pensions have a minimum.
Retirement Pension Distribution after 65 years
- With a dependent spouse, it is equivalent to monthly amounts of € 788,90 and annually to € 11.044,60.
- Without a spouse it is equivalent to an amount of 693.30 per month and 8.950,20 per year.
- With a non-dependent spouse, it is 606,70 per month and 8.593,89 per year.
Retirement Pension Distribution before age 65
- With a dependent spouse, it is equivalent to monthly amounts of 739,50 and 10.353,00 per year.
- Without a spouse it is equivalent to an amount of 598,00 per month and 8.372,00 per year.
- With a non-dependent spouse, they are 565,30 per month and 7.914,20 per year.
Distribution of Retirement Pension from severe disability
- With a dependent spouse, it is equivalent to monthly amounts of 1.183,40 and 16.567,60 per year.
- Without a spouse it is equivalent to 959,00 per month and 13.426,00 per year.
- With a non-dependent spouse, it is 910,10 per month and 12.741,40 per year.
Retirement pension for severe disability (permanent disability)
- With a dependent spouse, it is equivalent to 1.183,40 per month and 16.567,60 per year.
- Without a dependent spouse, it is 959,00 per month and 13.426,00 per year.
- With a non-dependent spouse they are 919,10 per month and 12.741,40.
Retirement Pension Distribution for absolute permanent disability
- With a dependent spouse, they are 788,90 per month and 11.044,60 per year.
- Without a spouse, they are 639,39 per month and 8.950,20 per year.
- With a spouse NOT in charge, they are 606,70 per month and 8.493,80 per year.
Retirement Pension Distribution for total permanent disability
- With a dependent spouse, they are 739,50 per month and 10.353,00 per year.
- Without a spouse, it is equivalent to 598,00 per month and 8.372,00 per year.
- With a non-dependent spouse, it is 565,30 per month and 7.914,20 per year.
Minimum pension distribution for widowhood
With family dependents, it is equivalent to 739,59 per month and 10.353,00 per year.
With 65 years or disability, they are 639,30 per month and 8.950,20 per year.
Between 60 and 64 years, they are 598,00 per month and 8.372,00 per year.
Under 60 years, they are 484,20 per month and 6.778,80 annually.
Minimum retirement pension in 2017
- At the age of 65, with a dependent spouse, it was € 786,90 per month. Without a dependent spouse, it was € 637,70 per month. With a non-dependent spouse, it was 605,10 per month.
- Retirement under 65 was equivalent, with a dependent spouse, of € 737,60 per month. Without a spouse, it was € 589,36. With a non-dependent spouse, it was € 563,80 per month.
- With 65 years of severe disability, with a dependent spouse, it was 1180,40 per month. Without a spouse, it was 956,50 and with a non-dependent spouse, it was 907,70 per month.
- On the other hand, the limit of the annual income of the minimum supplement, without a pension included, was € 7.116,18 without a spouse and € 8.301,10 with a dependent spouse.
Maximum retirement pension in 2018
In 2018, the maximum amount for pensions is 36.121,82 euros per year. If two pensions are received, the sum of them cannot be higher than the maximum limit.
As there is Early Retirement, in addition to the reducing coefficient of the Regulatory Base in advance, The amount resulting from the pension cannot exceed the amount resulting from reducing the maximum limit by 0.50% each quarter. Thus, the maximum retirement pension can be accessed if production starts at ordinary age.
However, the established maximum pension limit can be exceeded when there is a maternity supplement, increasing from 5% to 15% depending on whether the number of children is 2, 3, 4 or more and by prolonging the working life for above the legal retirement age when access to the retirement pension occurs at a higher age than the ordinary age, and for this reason an additional percentage will be recognized for each year of contributions in the period between the date of reaching that age and that of the event causing the pension.
