After working for a long time, the common desire of the worker, which cannot always be fulfilled, is to return to the position of being called up to enjoy definitively. The Spanish pension system offers it at various ages depending on the worker’s situation, but one of the most equitable is 63 years.
A early retirement at the age of 63 It assumes the advantage of several years before making ordinary retirement (65 years if 37 years and nine months have contributed and 66 years and four months in the negative case) and almost two years before the real retirement age, which is now 64.7. years according to social security data.
Early retirement brings with it a clear advantage (professional retirement) that, in parallel, has difficulty in intercepting early contributions to the pension system. That is why one of the conditions of the first retirement is the assumption of cuts in the retirement pension.
For this reason, if considering the possibility of early retirement, the employee should check if the option is attractive to him in terms of the cuts he has to assume in the retirement pension. However, it is best to verify this by knowing in detail what the options are for retiring early at age 63.
First voluntary retirement at the age of 63
The first option is voluntary early retirement, which, as the name itself indicates; it corresponds to the will of the worker. This method allows two years of progress with respect to the ordinary retirement age, so that he uses 63 years of age, an allowance of at least 37 years and nine months will be required (which lowers the retirement age of 65 years).
In addition, the employee is obliged to approach early retirement from the condition of registration or assimilation of social security and the right to a pension greater than the minimum pension (these are the minimum amounts of the minimum pensions. to 2023).
Involuntary early retirement at the age of 63
Another option, to retire at the early age of 63, is involuntary early retirement; from the involuntary termination of employment and this he allows progress to four years with respect to the usual age. This method requires a contribution of at least 33 years (two of which must occur within the last 15 years), serving this calculation to replace one year from the “military”, forced service of women or social benefit.
In order to benefit from involuntary early retirement, the applicant must be registered for six months (it can be easily done by following these steps) and come from one of the following seven circumstances;
– Collective dismissal for economic, technical, organizational or production reasons.
-A dismissal for objective reasons.
-The termination of the contract due to the force of the majority of the work authorized by the authority.
-extinction of the contract after a judicial resolution within the process included in the Bankruptcy law.
– Unilateral termination of the contract by the employee when his working conditions are substantially modified or he suffers serious violations by the employer.
– Extinction of the contract due to the death, disability or retirement of the individual entrepreneur or in cases of extinction of the legal person of the company.
-A termination of the contract for reasons of sexual violence.
Amount calculated for retirement pension
Thus, both the prior contribution and the condition from which early retirement is accessed will account for the first retirement that can be chosen. In all of these, indeed, the worker will be forced to cut his pension in retirement. These will also be different depending on the specific situation of the worker.
What does not change is how these cuts are made, which are made through the application of reduction coefficients. After the entry into force of the previous leg of the “Escrivá reform” pensions, the monthly coefficients (there were four) were made and applied to the amount of the pension and not to the controlling basis.
For this reason, the first step in calculating the retirement pension is the calculation of the retirement pension itself. the social security calculation method adds the contribution bases of the last 300 months (25 years) and divides them by 350 to obtain the regulatory basis, although two variables must also be taken into account for this;
-Relevant to Social Security coefficients for the base contribution in addition to the two-year implementation of inflation.
– It can be useful a gap integration that fictitious contribution bases (between 100% and 50% of the minimum base) fill the periods without additions. Not valid for self-employed workers and domestic workers.
Once the regulatory base has been calculated, it is necessary to know the percentage of the regulatory base that the pension will produce. It depends on the years and months contributed by the artist. With 15 years of contributions, 50% of the regulatory base becomes and thus:
– For each subsequent 49 months, an extra 0.21% of the regulatory base is granted.
– For each of the following 209 months, an extra 0.19% of the regulatory base is granted.
Yes, only employees with at least 36 years and six months of contributions will be able to qualify for 100% of the regulatory basewhat is colloquially called ‘100% pension’. Moreover, when only retirement is prescribed, the cut will be applied.
Pension cuts if you retire early at age 63
The reduction coefficient depends on the type of early retirement chosen, the number of years of contributions by the employee and the period before retirement. They appear to be included in Law 21/2021, of December 28, which can be consulted here in the State Gazette:
Voluntary early retirement
– For workers under 38 years of age and six months of contributions, a cut in the retirement pension from 21% to 5.87%.
– For workers between 38 years and six months and 41 years and six months with contributions, cuts in retirement pension from 19% to 5.60%.
– For workers between 41 years and six months and 44 years and six months with contributions, the pension is cut from 17% to 5.33%.
– For workers over 44 years of age and six months of contributions, pension cuts from 13% to 5.07%.
Involuntary early retirement
– For workers under 38 years and six months of contributions, the pension is cut from 22.50% to 5.87%.
– For workers between 38 years and six months and 41 years and six months with contributions, the pension is cut from 21% to 5.60%.
– For workers between 41 years and six months and 44 years and six months with contributions, the pension is cut from 19.50% to 5.33%.
– For workers over 44 years of age and six months of contributions, the pension is cut from 18% to 5.07%.
63 how he retired first to age: two exceptions
In addition to these two major types of ancient retirement, there are again two exceptions to be considered that refer to two groups of workers with different conditions, if they want to retire early at the age of 63;
–Passive Class Workers Regime: they will be able to retire at the beginning of the age of 63 (and from 60, with exceptions) as long as the effective work of the state is done for 30 years, and they will be able to make cuts without a pension when they are 35 years old.
–Workers with special pensions due to the work, risk or toxicity of their profession. Social Security provides a link on its website with the specific regulations for each of these affected professions.