The Spanish Government is taking various actions to promote this. Workers delay their withdrawal from the labor market. Historically the country has tended to retire before normal age, but now there are very interesting incentives available. prolong working life up to ten years.
It was recently announced that Social Security will allow the combination of the two types of incentives offered. In the 2021 pension reform, an additional increase of 4% over the corresponding pension or a certain amount in a single payment is provided. While only one of these alternatives can be chosen so far, Royal Decree to allow both options to be combined in the final Council of Ministers.
work after age 65
This proposal is part of the pension reform proposed by the Government in 2021. The main goal is to delay retirement. One of the most obvious advantages is the postponement of retirement. 10 yearsachieve a 20% increase in the corresponding benefit.
These government decisions aim to bring the effective retirement age closer to the legal age, which is currently 66 years and four months. Spain is among European countries with the lowest rate of labor activity after age 65. Only 5% of Spaniards decide to extend their career and postpone their retirement, this is half the European average. The government is considering Required for aging effective retirement to generate more income and guarantee public pensions for years to come.
Statistics show that the government’s plans are effective. 5.4% of new pensions in 2022 They were delayed, but in the first quarter of this year, an increase of 7.8% has already been observed. Half of these postponements are one year above the normal age, and a quarter are more than three years.
mixed formula
The blended formula offers additional benefits to new retirees. Those who delay their retirement between 2 and 10 years will receive a 2% increase for each delayed year and a single payment of half if they have chosen a single payment. if they decide Postpone retirement for 11 years and more, a single payment for 5 years of the delayed period and a 2% increase in their salaries for each additional year worked.
Effective retirement age
Social Security Minister José Luis Escrivá confirmed this. The effective retirement age in Spain is 64.8., previously he was about 63 years old. These data show that the measures taken to prolong the working life are somewhat effective. In this year, 1,148 pensions have been chosen as a single payment. The average amount is 13,100 euros. These beneficiaries represent 17% of pensions receiving a late supplement, compared to 12% recorded in 2022.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.