For retire in Spain in full and charge a contributory public pension, which receives its name because it is derived from the Social Security contributions and not a welfare scheme, people who want to retire must meet four basic conditions:
- Be affiliated with Social Security
- Have reached the minimum age for retirement, which is 67 years, or 65 if you have contributed for 38 and a half years
- Have contributed at least 15 years
- Being in a specific situation that requires retirement according to the standards established by law
Regarding the first point, it is necessary be affiliated with Social Security in some of the regimes that are contemplated, both the general regime, the special regime of the sea and mining or the self-employed, to name a few.
The beneficiaries will be those people included in the General Regime, affiliated and registered. The law also establishes that the workers who, on the date of the event causing the retirement, are not registered, as long as they meet the age and contribution requirements that the law previously establishes, will be beneficiaries. I mean, just be affiliated with the system either way.
The minimum age will be 67 years by the year 2027 but until then, a transitional regime has been established since January 1, 2016. Said regime starts at 65 years of age and delays the retirement date at the rate of one month every twelve, from 2013 to 2018, and two months per year from next 2018 to the year 2027. Thus, until the age of 67. Retirement will also be allowed for citizens of 65 as long as they have contributed a minimum number of years that increases from 35 to 38 and a half years by 2027 growing in relation to one quarter per year.
At what age will my retirement reach?
In 2018, those who are 65 years and 6 months old will be able to retire and in 2019 those who are 65 years and eight months old. So on until in 2027 the age reaches 67 years.
15 years is the minimum period listed, which is required to be able to acquire a contributory pension for the rest of your life. That is, 5.475 days listed to become a creditor. In addition, you must have at least two years of contributions within the previous 15 years at the time the right was generated, which is what they call a qualified or specific grace period.
This implies that, if a person has contributed for less than 15 years in their entire life, or if they have contributed for 15 years, but two of these were not within the previous 15-year period upon retirement, to cite an example, from the age of 52 in 2027, when the legal retirement age will be 67, you will lose the right you may have had to receive your contributory pension, although you will have the option of accessing a welfare-type pension in certain specific cases.
According to the law for be entitled to a retirement, you have to pass "the causal event". This fact can be:
- The day that the worker finishes his work activity, being in high status in the Social Security.
- The day the worker submits his application, in situations similar to registering with Social Security, with only two exceptions:
- In the event of compulsory leave, the day the position that gave rise to the assimilation ends
- In the event that you moved from Spain, the day you finish your work as an employee.
- The day the application is submitted, in non-registration situations.
This year was loaded with new reforms and changes in the amounts that citizens receive in their pensions, as well as new requirements for access retirement. Since January 1, more than 8,5 million citizens who have their pensions, received an increase in their amounts, of 0,25%, the minimum that the pension law has set.
The current year is the second year in which the new Revaluation Index, this includes pension reforms. With the increase applied this year, the increase will be 2,5 euros per month. And for the minimum retirement pension, which is 600 euros, the increase will be 1,5 euros. With this percentage increased, the maximum pension amount a retiree can receive is 2.567 euros per month.
Those people who are pensioners will stop receiving the pay to compensate for the deviation of the CPI, which used to be commonly seen in the years before the economic crisis.
Revaluation Index
El Revaluation Index, It's that one factor that directly affects the payroll of pensioners It is a complex indicator that takes into account for its calculation, factors such as the amount of the average pension due to the substitution effect, which is the difference between the pensions that are withdrawn and those that enter the system, the number of pensioners, the taxable income of citizens and the expenditure of pensions. It is always intended that the revaluation is balanced in the budget throughout the cycle. In other words, periods of economic crisis would be offset by periods of expansion of economic activities.
This formula has only two limits:
- The guaranteed minimum revaluation of 0,25% per year to avoid that, in a certain crisis, such as the current one, pensions fall and there is a maximum rise in the CPI
- The other is the 0,5% that should be applied in times of economic boom.
Keep the same system, but with some changes
In the current fiscal year, new changes were made in the requirements to be a candidate for a contributory pension, complying with the pension reform, agreed since 2013, which forces Spaniards to have to work for more years and collect less pension, as formulas to keep the Social Security system afloat, which has been shaken by the crisis that it has mercilessly brought more than 3,7 million contributors.
These reforms agreed in 2013 have progressively delayed the final age to be able to retire for Spanish workers, which would reach 67 years in 2027. So, those who want to to retire in the current year must be 65 years and four months old to be creditors to the pension. Until 2018, the retirement age will progressively increase one month per year, and after 2018 it will increase by two months each year until 2027 when a new agreement will be signed.
To access a pension You will have to be at least 35 years contributing, and for each quarter that is ahead of the official retirement age, you will suffer a progressive penalty in the pension, which goes from 2% of what is established in the regulatory base, if it has been listed for less than 38,5 years, up to 1,625% if it has been listed for more than 44,5 years.
The delay in access to retirementThe aforementioned has certain exceptions so as not to harm workers who already accumulate a long working life, contributing to Social Security, they can continue to retire with their full pension at 65 years of age, as long as they have contributed 36 years or more .
The generation that is retiring this year, He started working at an early age, therefore, he accumulates many years of contributions to the system. But the serious problem will be the one faced by today's young people, who usually start contributing later than their parents used to.
For workers who are 65 years old or more, your pension is determined by the amount of the regulatory base and the percentage you will receive from the pension depending on the number of years of contributions:
Years of contributions Pension percentage of the regulatory base
- At fifteen 50
- At sixteen 53
- At seventeen years 56
- At eighteen years 59
- At nineteen 62
- At twenty 65
- At age twenty one 68
- At twenty-two years 71
- At twenty-three years 74
- At twenty-four years 77
- At twenty-five years 80
- At age twenty-six 82
- At twenty-seven years 84
- At the age of twenty-eight 86
- At twenty-nine 88
- At thirty 90s
- At thirty-one years 92
- At thirty-two years 94
- At thirty-three years old 96
- At thirty-four years old. 98
- At thirty-five years of age or older 100
Since 2013, a period was also opened until 2022 in which the contribution period required to calculate the pension will progressively increase from 15 to 25 years. In each year beginning in 2013, one year will be added until the aforementioned 25 years will be added by 2022.
This is why the complicity of retirement is increasingly to bear for the economy and more complicated to access for the Spanish citizen.