Good news for workers in Spain. The Social security is studying reduce pension penalties of those employees who demonstrate a long career and want to benefit from early retirement. A procedure that would allow you to enjoy the 100% of pensions in some specific cases.
The years of contributions in Social Security and the age at which retirement is accessed are the two determining factors for the amount of pensions in Spain. Currently, the ordinary retirement age He is 66 years and ten months old. However, 65-year-old workers who demonstrate that they have exercised long professional career They can access early retirement, although with reducing coefficients.
What are reducing coefficients and how do they affect the calculation of pensions?
It is in these reducing coefficients where the new approach to Social Security comes into play. Well the workers with 40 or more years of contributionsbut who retire before the ordinary age, see their pensions reduced due to these coefficients or cuts, since they are applied in the regulatory base that calculates the amount of the benefit granted. Therefore, they can reach reduce between 13 and 21% of the total figureboth in those who decide to retire early voluntarily and involuntarily.
However, this new measure seeks to ensure that the reducing coefficients can rbe reduced according to the years contributedso the higher this figure is, the smaller the percentage that will be reduced in the pension. Thanks to this system, those workers who have very long careers could enjoy the almost complete or even complete provisioneven if they decide to retire before the established ordinary age.
If approved, this measure would mean an increase in pensions
Likewise, it would also affect the calculation of the regulatory base. This procedure is carried out using the contribution bases for the last years of the working career, determining the total amount of the pensions. Subsequently, the corresponding reducing coefficients are applied to this figure by each year of early retirement. However, if this measure is implemented, it would reduce a smaller percentage and would result in a higher pension.
If approved, workers who want to benefit from this procedure must demonstrate that they have a long-term work career. This means that Social Security shows that they have worked for decades, which not only rewards the time dedicated to their career, but also the stability and permanence in their jobs. However, it has not yet been confirmed that it will be implemented.
For the moment, the measure achieved 180 votes in favor during a motion brought before the Plenary of Congress with the aim of the Government reforming the law. If achieved, workers who want to retire early and demonstrate be 40 years or older with contributions They may choose to receive 100% of the pension, without being affected by reducing coefficients. However, it may take months or even years for this process to become official.