What are the most important months of your working life to calculate how much you will receive in pension
With the pension reform, the Government has tried to ensure the viability of the public pay-as-you-go system and ensure decent and fair benefits. In addition to the increase in benefits according to the Consumer Price Index (CPI), other innovations have been incorporated that benefit pensioners. Escrivá’s plus to long listing careers, that is, over 44 and a half years of workhas only managed to reach 99,000 retirees.
Keep in mind that during this 2022 the legal ordinary retirement age is 65 years for those who have contributed for more than 38 years and 8 months, while it extends to 66 years and 2 months for workers with less than that contribution. Is age increases by two months for each year that passesat least until 2027, from then on the age will be set at 65 years for contribution periods longer than 38 years and 6 months, and 67 years for those who have contributed less than that time.
Despite these limitations, some pensioners have opted for retire early due to the revaluation of pensions according to the CPI by at least 8.5% according to forecasts. An increase so important that it is making many workers between 63 and 65 years old and with long contribution careers now value advancing their retirement, an issue that a few months ago they did not even consider for the ‘fear’ of increased penalties. But, how is it calculated then what a pensioner will receive each month for his retirement?
What is your regulatory base?
As pointed out from the Social Securitystarting this year, the regulatory base is the quotient resulting from dividing the contribution bases by 350 of the interested party during the 300 months immediately prior to the month prior to that of the causal event. Therefore, this means that the key months and years when collecting the pension will be 25 years prior to retirement. If the pension is accessed from a registered or assimilated situation without the obligation to contribute, the period for determining the regulatory base cannot go back to the moment in which the obligation to contribute ceased.
It must be taken into account that although the pension payroll is paid in 14 installments, in this case the sum of the contribution bases will be considered in 12 annual periods. There are also some cases of reduction of the same, for example, workers who have stopped working for reasons not attributable to their free will. when they exist periods without quotesthe first 48 monthly installments will be considered with an amount equal to 100% of the minimum base for employees and 50% for the rest.
The percentage may vary depending on the years of Social Security contributions. A is applied scale that starts with 50% at the first 15 years, and which increases by 0.21% from the sixteenth year for each additional month of contribution, between months 1 and 106. While once that month 106 is over, it will be 0.19% until retirement itself. If we manage to complete the remaining 146 up to 36 years of contribution, we will add 27.74% more, and, therefore, we will access 100% of our regulatory base.
However, until the year 2027, a transitory and gradual period is established, in which the above percentages will be replaced by a table of the application period. The years of contribution that are taken into account are:
- To the General Scheme of Social Security.
- To the different Special Schemes of Social Security.
- To the old Regimes of the Old Age and Disability Insurance and/or Labor Mutualism.
- To integrated schemes.
- To other Social Welfare Entities, which act as substitutes for those corresponding to the scheme or schemes that are pending integration.
- Those made to the Passive Class Regime of the State.
- To the Public Administrations and organisms dependent on them prior to January 1, 1959, by personnel who did not hold civil servant status.
- The contributions of Justice Administration personnel will be assimilated to contribution periods when there are differences between the periods actually worked that appear in the certificate of services rendered and those that appear in their contribution certificate.
Complements and reducing coefficients
Depending on the situation of each taxpayer, they will be able to access a series of supplements that increase the amount of your pension. For example, those who have been mothers or fathers can request a maternity or paternity supplement for having had two or more children. This represents an increase of between 5% and 15% in the contributory pension, and even with retroactive effects.
Likewise, there are specific cases for which the period of the ‘military’ or military service, can count as years of contribution in retirement. The periods of military service or alternative social service they are only computed to reach the specific contribution period in the case of early, voluntary or involuntary retirement, and with a maximum limit of one year.
As they point out in the BBVA retirement portalthose who opt for early retirement should take into account that some reduction coefficients depending on the number of months in advance retirement age and the accumulated contribution period. For each year or fraction of a year that the worker lacks to turn 65the following reduction coefficients will be applied:
- Between 30 and 34 full years of accredited contributions: 7.5%
- Between 35 and 37 full years of accredited contributions: 7%
- Between 38 and 39 full years of accredited contributions: 6.5%
- With 40 or more full years of accredited contributions: 6%
On the contrary, those who choose to delay their retirement age will receive a series of delay bonuses for ordinary retirement. This beneficiary will collect a percentage or additional amount for each full year quoted between the date on which said ordinary age was reached and the event giving rise to the pension. He may be a additional percentage of 4%a lump sum or a combination of both.
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