Be clear if A retiree can set up a business It is essential for those who, despite having finished their working life, want to continue being productive and lead an economic activity.
In any case, it is always advisable to have good advice on everything related to entrepreneurship. If you need to resolve your doubts about the insurance you should take out to carry out an activity on your own or through your company, you can count on Euroteide Seguros (Insurance Advisors since 1996)We will be happy to advise you and offer you the insurance you need.
Is it possible to work while retired?
As a general rule, receiving a public retirement pension is incompatible with carrying out an activity as an employee or self-employed person while registered with Social Security. However, there are more and more exceptions, because the number of pensioners who need to supplement their monthly income.
In the case of people who receive a contributory retirement pension, it is possible to continue receiving 100% of the benefit and work at the same time, only in the case of self-employment. That is to say, it would be necessary to become self-employed.
To avoid cuts in benefits, Annual net income from work cannot be higher than the Interprofessional Minimum Wage (SMI) on an annual basis. In addition, of course, income from economic activity must be declared and the corresponding taxes must be paid. However, You do not have to pay contributions as a self-employed person, Therefore, no new rights to future benefits will be generated.
In the case of people who were already self-employed before reaching retirement, it must be taken into account that It is compatible to be a retired self-employed person and own a business. You can collect your pension and, at the same time, continue to own the business and perform the functions that arise from that status.
The legislation also determines that A retiree can be a partner in a company. You may own it outright or simply have some shares or interests.
Happy smiling italian adult people couple outdoors
There are, therefore, different ways in which a retiree can remain active in the labour market without losing his or her public benefit.
Early retirees due to ERE: can they work?
The figure of early retirement does not exist at a legal level, it is something outside the Social Security system. People in this situation reach it through an agreement with their company by virtue of which the employment contract is terminated.
The early retiree then goes on to be officially unemployed and is entitled to unemployment benefits (if he or she meets the requirements for this). The difference with traditional dismissal is that here the affected person receives from the company a part of what was his usual salary. As a result, the early retiree can have income from the SEPE and from his company at the same time. In addition, the The company continues to pay contributions for that worker until he or she reaches the legal retirement age.
Those who are early retired can work both self-employed and as an employee, because for legal purposes they are considered unemployed. If the contribution for the new job is lower than that stated in the agreement signed between the company where the early retirement occurred and Social Security, the latter will continue to pay the contribution.
If the interested party was collecting unemployment benefits at the time of taking up the new job, he or she loses the right to continue receiving this benefit. In no case does the employee lose the right to receive the percentage of salary agreed with the previous company until reaching the agreed age.
How to set up a business if you are retired early due to ERE
To start a business project in these cases, the following must be taken into account:
Review the conditions of early retirement
The early retirement agreement cannot prevent the affected person from working, but some do establish a non-competition agreement valid for a certain period of time. This means that it cannot be
be self-employed or employed by an entity that is the competition of the previous company.
Support for the benefit
If you are receiving unemployment benefits or a subsidy, you must inform the SEPE of the start of your new work activity so that it stops paying these amounts.
Otherwise, setting up a business follows the same general requirements as in any other case:
- Project feasibility assessment.
- Choosing the legal form of the business.
- Assess financial and capital aspects.
- Ensure legal and tax compliance.
- Preparation of a business plan.
What insurance is needed?
The economic activity of a retiree or pensioner is completely legal if it is carried out under the terms we have been discussing. It also requires the contracting of a series of insurance policies that are essential to be able to carry out a self-employed activity with complete peace of mind:
Insurance required by law
El accident or agreement insurance It is mandatory for companies that employ employees, provided that this is established by the applicable sectoral agreement. These policies protect employees with a capital sum in the event of death or disability resulting from an accident at work.
Another essential insurance is that of professional or health civil liability, which is required for the exercise of certain professional associations and which covers possible claims for errors or negligence in professional performance.
In the case of having commercial vehicles, it is necessary to have a fleet insurance (not valid with regular car insurance).
Non-mandatory insurance
There are insurance policies that, although not mandatory, are highly recommended:
- General liability insurance.
- Multi-risk insurance or commercial insurance.
- Health Insurance.
- As we have seen, a retiree can set up a business, but he must do so within the limits and conditions established by law. If you have decided to fulfill your dream of having your own company or being self-employed now, you can count on Euroteide Insurance (Insurance Brokers and Consultants) to advise you on the insurance you need to start this new stage of your life with complete peace of mind.
