How can you collect the pension and continue working?


The pension reformdesigned by the Minister of Inclusion, Social Security and Migration, Jose Luis Escrivahas among its main objectives that those over 65 years of age, an age that, if it is proven that they have contributed for 38 and a half years, allows them to retire without penalty, remain in the labor market as long as possible and that they continue to generate income for the system, also avoiding extra spending on benefits. The pension minister has insisted that delaying retirement for just a few months has a very positive effect on the system and helps to guarantee the payment of benefits in the medium and long term.

Together with the incentives already in force since January aimed at workers delay your retirementthere are many mechanismsactive retirement, partial, flexible wave delayed– that allow the collection of these benefits to be made compatible with a job and continue to be active after the age of 65. Practically, there is an alternative for each profile, but the fear of a pension that is too low is behind most of the decisions that opt ​​to continue working despite the fact that the mental and physical response is not the same as that of a young person.

What retirement pension do I have?

The Active Population Survey (EPA) and the statistics of the current reform or of the previous ones, or of the income needs, there are more and more workers over the age of 65 and over, who despite not reaching that age, are retired and, at the same time, receiving part of their pension. Up to 315,000 workers, a not very significant percentage, but one that will continue to increase in the coming years out of the total, were working after the age of 65, despite the difficulties involved in keeping a job or finding a new one at that age.

Meanwhile, last year there were 288,000 retirees and pensioners with severe disability or absolute disability and citizens over the age of 65 registered in the public employment services as job seekers. In no case, this important number of applicants are not counted as unemployed. They are part of a group that also includes applicants who apply for a job for a period of less than 3 months, students under the age of 25 who are looking for their first job, those attending vocational training courses or those who want to telework or do so. abroad.

How to collect the full pension and continue working and contributing

Lto Social Security highlights all the ways and options to obtain extra income to compensate for pensions that in the 53% of cases do not reach 1,000 euros. The Law makes it clear that it is possible to make the benefit compatible with a part-time job, for example. In this situation, the pension payment will be lower in proportion to working time, which means a salary. Along with this possibility, the ministry highlights that the retirement pension is also compatible with self-employment, whose total annual income does not exceed Interprofessional Minimum Wage (SMI) -1,000 euros in 2022-.

It is also possible to maintain the ownership of a business and the exercise of the functions inherent to such ownership. In addition, the retirement pension is compatible with the exercise of the activity of health professionals Retired doctors and nurses under the age of 70. These professionals may be reincorporated into active service by the competent authority of the autonomous community, under the provisions of article 13 of Royal Decree 463/2020, of March 14. This reincorporation may be both full-time and part-time.

Active retirement allows you to receive half of your retirement pension, but the self-employed have a series of very attractive benefits

News and requirements of Active Retirement for the self-employed

Meanwhile, another option that is of interest to more and more pensioners is the Active Retirementthat allows you to collect the contributory retirement pension and at the same time do any job as an employee or self-employed with a series of conditions. Thus, access to the pension must have taken place at least one year after reaching the ordinary retirement age, so those who anticipated retirement are excluded.

In the case of active retirementthe amount of the retirement pension will be equivalent to 50% of the amount of the recognized benefit, although if the activity is carried out on their own account -self-employed- and it is proven that they have hired at least one employee, the amount of the pension compatible with the work will reach 100%. The sixth bis final provision of the LGSS It also provides for the possibility of extending this 100% compatibility to employed workers and other self-employed workers in the future.

In addition, it is contemplated that the pension will be revalue in its entirety according to the CPI -Consumer Price Index-, so these benefits will experience a rise of 8.5% next year. However, as long as the compatible job is maintained, the amount of the pension plus the accumulated revaluations will be reduced by 50%, except in the case of self-employment with employees. Pensioners will not be entitled to the minimum supplements during the time in which the pension is compatible with work. The most notable exception is that this type of retirement excludes high-ranking public sector officials.

Delayed retirement, a retirement with many incentives

From January 1, delaying retirement beyond the ordinary age can be profitable. Among the novelties of the new law guarantees the purchasing power of pensions and other measures to reinforce the system, there is the increase in incentives to prolong your working life and delay the retirement age, known as delayed retirement. According to Social Security, there is the possibility of receiving a single lump-sum payment per year of delay. The amount, which ranges between 5,000 and 12,000 euros, varies depending on the years of credited contributions on the date of your ordinary retirement. An additional percentage of 4% is also possible for each full year contributed after reaching the ordinary age.


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