Work is a dignity or so they say. However, there are many workers who are looking forward to the time of retirement, ending their working life and starting to enjoy a pension in their last years.
“The financial benefit of retirement, which is included in all the regimes of the Social Security system, seeks to replace the income of work with a lifelong pension, unique and indefinable, if the worker, due to age , completely or partially stop his activity. labor “, explains the Social Security from its website.
The average retirement pension from the system stands at 1,376.40 euros per month in September 2023, while that from the General Regime amounts to 1,533.09 euros per month, according to data from the National Social Security Institute (INSS). The pension received by self-employed retirees does not even reach the Minimum Interprofessional Wage –1,080 gross euros per month–, because they receive an average pension of 916.70 euros per month.
But, at what age can a self-employed person retire? “The retirement age is delayed from 65 to 67 years. The increase will be progressive until reaching 67 years in 2027. To do this, it regulates a transitional contribution period of 10 year, from 15 years to 25 years in the new Law, which will be fully implemented from 2022”, they explained from the National Federation of Associations of Self-Employed Workers (ATA).
In addition, like the retirement age, the contribution period required to obtain 100% of the benefit will go from 35 years to 37 years of contribution until 2027. In this sense, the age requirement that comes to age 67. years, or 65 years if 38 years and 6 months of contributions are proven in 2027.
A self-employed person can voluntarily retire two years before the legal retirement age. In 2023, the legal retirement age will be 66 years and 4 months if less than 37 years and 9 months have contributed, although if this period is exceeded, the age will be 65 years. Therefore, the self-employed worker can retire early from the age of 64 years and 4 months or 63 if they have contributed more than 37 years and 9 months. Therefore, it is not possible for a self-employed person to retire before 60.
In addition, the self-employed worker must also meet the contribution payment requirement for at least 35 years. “The pension received in this case will be reduced by a percentage depending on the years of contributions. In addition, those who are forced to retire prematurely are protected and the conditions of access to the previously agreed agreements are respected . of this Law “, they said from ATA.