The Spanish Government is carrying out various actions to promote this. workers delay withdrawal from the labor market. Historically, there was a tendency in the country to retire before the normal age, but now very interesting incentives are being offered. extend working life up to ten more years.
It was announced recently Social Security It will allow the combination of the two types of incentives offered. In the 2021 pension reform, an additional 4 percent increase in the relevant pension or a certain amount in a single payment was introduced. So far, only one of these alternatives has been chosen, but Latest Council of Ministers Decree allowing combination of both options.
Business after 65 years
This proposal is part of the pension reform proposed by the Government in 2021. main purpose delay retirements. One of the most notable advantages occurs when withdrawal is postponed. 10 yearsa 20% increase in corresponding benefit is achieved.
These government decisions aim to bring the actual retirement age closer to the legal age, which is currently 66 years and four months. Spain is one of them European countries with the lowest labor force activity rate after age 65. Only 5% of Spaniards decide to extend their careers and postpone their retirement; This rate is half of the European average. The government is evaluating Increasing age is important Effective retirement to generate more income in the coming years and secure public pension.
Statistics show that the Government’s plans are effective. 5.4% of new retirements in 2022 They are late, but an increase of 7.8% is already observed in the first quarter of this year. Half of these delays are one year above the normal age, while a quarter delay more than three years.
mixed formula
The hybrid formula offers additional benefits to new retirees. Those who postpone their retirement between 2 and 10 years will simultaneously receive a 2 percent increase for each year postponed and will receive a single payment of half the amount they would have paid if they had preferred a single payment. If they decide Delaying retirement by 11 years or more will receive a 2% increase in pension for each additional year worked, plus a single payment applied to the 5-year lag period.
Effective retirement age
Social Security Minister José Luis Escrivá confirmed this The effective retirement age in Spain is 64.8 yearsHe was about 63 years old before. These data show that measures taken to extend working life are somewhat effective. This year, 1,148 retirees preferred single payment. the average amount is 13,100 euros. These beneficiaries represent 17% of pensioners receiving late payments, compared to 12% recorded in 2022.