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What you need to know about pension penalties for early retirement

early retirement This occurs when the employee becomes a pensioner before reaching the age established for retirement, which is currently…

By admin , in news , at May 11, 2022

early retirement This occurs when the employee becomes a pensioner before reaching the age established for retirement, which is currently prescribed 66 years and 2 months, However, it should be kept in mind that this modality implies a series of penalties which affect the amount to be received in the respective pension.

A series of new rules have come into force in this 2022 a punishment To raise the retirement age in Spain and which affects voluntary early retirement and involuntary early retirement.

voluntary early retirement

it is understood by voluntary early retirement In which workers of 65 years of age or above who have contributed for at least 35 years opt non-compulsory.

las a punishment Early retirement is more serious for voluntary retirement than involuntary retirement. In fact, the deduction coefficients are applicable on pension on a monthly basis, whereas in 2021 it was done quarterly, and now it is done on the basis of accumulated contribution period (earlier on regulatory basis).

As reflected in the new rules, these reduction coefficients affect retirement pensions as follows:

  • In case of having contributed less than 38 years and six months to Social Security and expecting a pension of 24 months, The applicable deduction is 21%, In case of retirement a month earlier, this percentage will reduce till it reaches 3.26%.
  • If you have contributed for 38 years and six months, but less than 41 years and six months, then the maximum deduction in pension (24 months ago) is 19%and minimum (one month) 3.11%.
  • Deduction for those who retired two years earlier, for workers who contributed 41 years and more than six months to Social Security but less than 44 and a half years 17%, If you opt for early retirement, one month before opting for normal retirement, the reduction percentage is 2.96%.
  • In the case of people over 44 years of age and six months contributing to Social Security Pension reduction ranging from 13% and 2.81% (up from 24 a month ago).

involuntary early retirement

Involuntary early retirement occurs when The worker has been prematurely fired of the labor market, either because it has been the object of mass or individual dismissal for economic, technical, organizational or production reasons, because of cases of extinction due to force majeure or because the employer running the company dies, retires is or has been incapacitated by the company to which the employee belongs, or the person in legal charge of the company has been removed.

These people will be eligible for retirement four years before normal age Provided that they prove 33 years of contribution and are registered as a job seeker for at least six months prior to accessing it.

This 2022, people who have been forced to retire early will face the following penalties:

  • 0.5% reduction for one month advance if you have contributed for 44 years and six months or more.
  • If you contributed for 38 years and less than six months, the deduction for advance retirement for four years jumps to 30%.

What you need to know about pension penalties for early retirement

2022-05-11 10:57:19