How much does the pension calculation period and retirement age increase?


The Minister of Inclusion, Social Security and Migration, Jose Luis Escrivacontinues to negotiate the toughest block of its pension reform, in which the calculation period to obtain the benefit and in which it will be decided by what amount the maximum pensions should rise – also the contributions – in the coming years. Without specifying how many years should be taken into account to determine the retirement benefitthe minister has been giving clues that have served to reassure the unions in part United We Can Yet the baby boomer generationcontrary to raising it many more than the current 25, since Brusselswhich calls for reforms aimed at increasing them… and that have effects on spending.

As many as eight out of ten workers, according to estimates from the Bank of Spainwould see their pension reduced if the calculation period were to go from 25 years to 35 years and the benefits would fall by an average of 8.2%. To avoid this setback, Write He has assured that he will seek a neutral effect, so as not to harm the lowest pensions and that contribution gaps will be taken into account and some of the worst years will not be included. Its latest headline is that it will not rise much beyond 25 years, which indicates that of course it will not reach 35 and that the measure will be totally decaffeinated. In other words, it will not serve to counteract the increase in spending that will be generated by the rise in benefits with the Consumer Price Index (CPI)nor the removal of Sustainability Factor of the Popular Party, which is what the European Union.

What will be the average retirement age in 2022

Meanwhile, the statistics that Social Security produces monthly are giving some joy to those responsible for the ministry. At the moment, as of September, there has not been a flurry of registrations, waiting for what happens in the last quarter, in which many workers with the possibility of retiring could opt for it with the incentive of the increase in pensions of 8.5% forecast for next year. The average benefit of new retirees has also moderated, thanks to a considerable increase in the weight of withdrawals at ordinary age or later. The effects of the 2011 and 2013 reforms have made the age of average retirement It has gone from 64.2 months in 2018 to 64.8 months in 2022, a remarkable increase that means not only that retirees start collecting their pension half a year later, but also that they have contributed during that ‘extra’ time.

Thus, the evolution of retirement registrations shows that during the first three quarters of the year 63.7% have retired at the ordinary age or above, a historical percentage motivated by the effect of the previous reforms, but also, by the delayed retirement incentives and to the current penalty table. Thus, delayed voluntary withdrawal is beginning to take hold and already represents 5.5% of the total and it is necessary to go back to 2013 to find a similar percentage. For each year of extra contribution, the retirement benefit is increased by 4%, while if you decide to opt for a single payment, linked to the previous years of contribution, the incentive can reach 12,000 euros per year.

What are the incentives for delayed retirement?

Meanwhile, the companies also benefit when they still have these workers. The employer is exempt from paying contributions for common contingencies of workers who decide to delay retirement, except in the case of temporary disability. Along with this, they have a reduction of 75% of the contribution during the situation of temporary disability of those workers who have reached the age of 62 and continue in the company. Despite everything, the voluntary early retirement they continue to represent a percentage of more than 19%, although their impact has been diluted by the drastic drop in non-voluntary withdrawals, due to the economic boom after a devastating crisis and their ‘prohibition’ of executing them due to the coronavirus pandemic. That is another of the reform objectives under way.

the minister Write remains confident that the best formula to sustain the pension system is prolong working life, but ruled out last week the possibility of raising the ordinary retirement age beyond 67 years, which are those planned in 2027 for workers who have contributed less than 38 and a half years. The claim of the head of Social Security is supported by the data, since in the first nine months of the year almost the same number of workers aged 67 have already retired as in all of 2021 and more than in 2020, 2019 and 2018 In addition, there is an important increase in withdrawals at age 66a trend that was already seen last year.

Also last week, specifically on Monday, the minister gave a clue, again without specifying the deadlines too much, about what the maximum pensions, and quotes. She did it in an interview The newspaper, assuring that “a reasonable range of increase would be between 15% and 25% over a medium-term horizon, very gradually.” This increase would be motivated by the underquotation to the Social Security of the highest salaries, of the lowest in the countries of the European environment, but also of the limited pensions that these workers receive, who could be rewarded to a greater extent. In any case, it seems that the objective is long-term, since the commitment with Brussels is to gradually apply the gradually unravel in the next three decades. .


*The article has been translated based on the content of If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!

For all the latest news click here

Denial of responsibility! HOS is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at The content will be deleted within 24 hours.

Leave A Reply

Your email address will not be published.