Many Spaniards are concerned about their retirement and the requirements that must be met to be able to access this Social Security benefit. Moreover, in this scenario of economic recession, and with the pension fund at risk, many are opting to take out long-term financial savings products, such as savings accounts or pension plans, so that their future is peaceful and their retirement is guaranteed.
In addition to these products, there are also Savings insurance or Life insurances Unit Linked Insurance that are very useful to guarantee our economic stability and that of our family in the future. However, the Insurance offer is very wide and sometimes complex, so it is best to contact a good Insurance advisory, such is the case of Euroteide Insurance, a consultancy with XNUMX years of experience in the sector that operates in the south of Tenerife. Euroteide Insurance will put all its good work and its experience in the field of Insurance to find the product and solution that best suits you.
What minimum requirements are necessary for the retirement pension
To have access to the retirement pension it is necessary to comply with a series of requirements. These will depend on whether it is an ordinary retirement or if it is an early retirement. However, the requirements to be able to access the minimum retirement pension are the following:
- Having the ordinary age, that is, 65 years and 10 months.
- Having contributed to Social Security for a minimum of 15 years, of which at least two must be within the 15 years immediately prior to retirement.
- That the causative event occurs, that is to say, that the work activity ceases or that the request for the retirement benefit is presented.
Ordinary retirement
Let's see what requirements are required to be able to access ordinary retirement and be able to access 100% of the retirement benefit:
- Having fulfilled the retirement age, which, in 2020, is 65 years.
- Having contributed to Social Security 37 years, at least.
- Be registered in any of the Social Security regimes.
- That the causative event has occurred, that is, employment has ceased (provided that at least three months have elapsed since the cessation of employment) or the retirement benefit has been requested (if the worker is in a situation assimilated to registration or not registered, provided that three months have elapsed since the end of employment).
- You may also qualify if you have paid Social Security contributions for less than 37 years, provided you have 65 years and 10 months.
Early retirement
It is possible to retire early, as long as certain requirements are met, taking into account that, in these cases, 100% of the retirement pension will not be received. In any case, requirements to be met are the following:
- Having contributed 35 years in case of voluntary termination of work activity or a minimum contribution of 33 years in the event of forced termination of work activity.
- Having an age two years lower than the ordinary retirement age for the voluntary cessation of the activity, or 4 years lower than ordinary retirement age for forced cessation of work.
How the retirement pension is calculated
To be able to calculate the retirement pension is is necessary to take into account the contribution bases. In 2020, the last 23 years must be taken into account (Although this number will grow progressively, being 24 years old by 2021).
To calculate retirement the following steps should be followed:
- Add the contribution bases: it is necessary to add the contribution bases of the last 23 years. These appear on the worker's payroll, although it is also possible to request a Report of Contribution Bases to Social Security.
- Calculate the regulatory base: the result obtained from adding the contribution bases must be divided by a number that will depend on the computable years of the contribution bases. For the year 2020, this divisor is 322; and by the year 2021 it will be 336.
- Apply the percentage: this percentage will depend on the years in which they have been listed and then must be applied to the regulatory base. However, it must be taken into account that in order to receive 100% of the retirement benefit, it is necessary to have contributed a minimum period of years. Thus, for workers who have contributed 15 years, they will receive 50% of their retirement pension and, from there, an additional percentage will be added for each month of contributions until 100% of the retirement benefit is reached. This additional percentage will depend on the year in which the retirement occurs.
How the retirement pension of a self-employed is calculated
Following the latest reforms of the Pension Calculation System, the retirement of the self-employed is calculated according to the same rules that apply to the rest of the workers.
Thus, provided that the requirements specified above are met, the amount of a self-employed person's retirement will depend on the number of years contributed to Social Security, as well as the amount contributed. Thus, when the self-employed has contributed for 15 years, he will have a retirement of 50% of the regulatory base, and if he has contributed for more than 37 years, he will receive a retirement benefit of 100%. In any case, self-employed workers will have a maximum pension of 2683,34 euros per month and a minimum of 226 euros per month.
Undoubtedly, knowing how the retirement pension is calculated and what requirements must be met in order to receive this benefit is essential, especially when the retirement age approaches. In any case, the most far-sighted will want to contract a savings product such as savings insurance or pension plans. To do this, it is best to opt for the services of Euroteide Insurance, an insurance consultancy based in the south of Tenerife and that, with its 25 years of experience, will put all its good work in the search for the best option, yes a solution made for you and your family.