10.5% of workers already retire after the legal age, double that before the reform

10.5% of workers already retire after the legal age, double that before the reform


The Ministry of Inclusion, Social Security and Migration is finding positive results in the search to get workers to extend their retirement. The last pension reform block addressed in the last legislature included a series of incentives to delay retirement and, in addition, was combined with a package of penalties on early retirement. At the start of 2024 the resulting balance is that Discharges due to delayed retirement have doubled and are now 10.5% of the total, when before the reform they used to be below 5%. Without going any further, before the pandemic they were 4.9% of the total.

The data is clear: this tool has doubled its effect and Social Security shows its positive surprise at the reception it has had. Already the preferred option for one in ten new retirees, this modality adds some 50,000 retirees discharged at an average age of 68 in two years and two months.

The deck of incentives agreed with employers and unions in the previous legislature plays in favor of Social Security. The main change was that the cuts began to be applied to the pension to toughen them. In January 2022, two combinable formulas came into force to reward voluntary delay in retirement by completing a minimum of 15 years of contributions and 65 years of age:

  • An additional percentage of 4% for each additional year of contributions after reaching the ordinary age, which will mean an increase in the amount of the pension.
  • A flat-rate check per year of contributions will depend on the years of contributions when you reach retirement age, and ranges from approximately 4,700 to 12,000 euros. It is received at the time of retirement.
  • Or a combination of both options.

Also the effect of Penalties with pension reduction coefficients that was introduced by the former minister, José Luis Escrivá, on voluntary early discharges. This option has also reduced its weight: before they were around 30%, now they are 20% of total discharges – although in January and February a rebound is observed to 29% of total cases.

This penalty is harsher the later you retire and, in any case, it is lighter for workers with long contributions careers. In an extreme case, the worker with less than 38.6 years of contributions who decides to advance his retirement two years (24 months) will see his benefit reduced by 21%.

Likewise, This same course, another new system of penalties has come into play that affects the highest benefits of the system. The pension reduction will be up to 5.7% of the maximum pension for a worker who anticipates retirement by 24 months and has a contribution career of less than 38 years and six months. With all the tools on the table, the age at which people who retire early have also been extended to 63.4 years.

Extend the retirement age

Stretching the retirement age is one of the long-awaited objectives that all the pension reforms of the century have pursued. The actual retirement age is advancing progressively and was over 65 years old for the first time in history during 2023.

In addition to the effect of early retirement, the gradual increase in the legal retirement age to 67 years, which it will reach in 2027, was formulated by the PSOE Government in the 2011 reform, at a rate of two months per year, is another reason that this pushing the average retirement towards levels closer to the legal age and that acts together with delayed retirement. This is how he explains it to Robert Meneu, professor at the University of Valencia and member of the Pensions and Social Protection Research Group.

In the long term, the Government’s public spending projections on pensions report suggests that An increasing number of workers will retire beyond the age of 65, current effective retirement age. With the latest reform processes and long-term projections, it is expected to leave the real age at 66.6 years, very close to the legal age of 67 years.

The Government also expected in that report that almost 28% of senior workers would continue working beyond the age of 65 by mid-century, and that more than half of 65-year-old workers would voluntarily delay their retirement thanks to the cocktail. of incentives and penalties.



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