Fedea proposes an “à la carte” retirement compatible with paid jobs

Fedea proposes an “à la carte” retirement compatible with paid jobs


The Foundation for Applied Economics Studies (FEDEA) proposed this Monday a new à la carte retirement model: “flexible, adapted to the personal circumstances” of the worker, explained economist Sergi Jiménez, one of the creators of the report. Food for thought: contributions to the debate on public policies that they presented at the entity’s headquarters.

In this way, this new modality would be linked to a new type of employment contract that would favor voluntary active retirement without establishing a ceiling on remuneration or working hours. “It could be full-time, part-time, employed or self-employed,” explained another of the promoters of this report, the deputy director of Fedea, José Ignacio Conde-Ruiz. This contractual modality would lack severance pay and Social Security contribution obligations. “Only the solidarity mechanism would be applied,” said Conde-Ruiz.

The deputy director of Fedea assured at the press conference that the current Spanish pension system “is designed so that workers retire as soon as they reach retirement age,” which It is currently set at 66 years and six months of age in Spain. He reiterated that this model is designed because the elderly “are bothersome” in the labor market since “there is an erroneous perception that older people take jobs away from young people.” He equated this “fallacy” with that of immigrants taking jobs from nationals.

Fedea’s proposal is that there is an urgent need to modify the current retirement legislation so that people “can decide voluntarily” if they want leave for retirementat what pace they want to do it and that it is compatible with some type of part-time or full-time paid work.

The key is that an active retired person have the possibility of being able to work without restrictions. That you can continue in the same company or change to another and that your pension is compatible with your salary.

“In the event that the worker remains in his company, the contractual relationship he had before would end and a new one would begin without the right to compensation for dismissal,” said Conde-Ruiz. That is, what they propose is to create a contract under a special regime in which there is no dismissal cost for the contracting company, since these workers have the security of their public pension in the event that the company decides to terminate the employment relationship.

At the same time, the employer will have the ability to freely dismiss the active retired worker with a fixed notice period. That same The worker would also have a free relationship with his company.being able to leave their job at will and with prior notice.

Regarding social contributions, the Fedea proposal does not rule out that the active retiree keep quotingbut provided that once the work time has ended, the pension is recalculated upwards.

According to Fedea calculations, this new method of active retirement “would contribute 1.6 million active people to the Spanish labor market between now and 2050.”

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