In such an age predicting retirement While it may sound tempting to many, it’s important to understand what this means financially. If you’re considering this option, here’s a detailed guide on how much money you could be giving up by doing so in 2024.
When is the “official” time to retire and how does early retirement work?
Nowadays, official age to get pension Retirement is 66 years and 4 months. However, the picture changes slightly for those who have been paying into the system for less than 37 years and nine months. If you have more contributions than this period, you can access your pension at age 65. But wait, because by 2027 the rules will change: Those who have paid contributions for less than 38.5 years will have to wait until the age of 67 for normal retirement. This is a fact that will take root in the pension system, especially after the Escrivá reform.
So what happens if you decide to retire in early 2024?
When deciding to enter a stage early retirementIt should be understood that Social Security will impose penalties. These discounts depend largely on how long you contribute and how many months you decide to advance your withdrawal. Some of the numbers you may encounter include:
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If you have deposited premiums for less than 38 years and six months: If you withdraw two years ago, you will face a 21% deduction, and if you withdraw one month ago, you will face a deduction ranging from 3.26%.
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Contributions between 38 years and 6 months and 41 years and 6 months: If you withdraw two years ago, the penalty will be 19%, if you withdraw one month ago, the penalty will be 3.11%.
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And if you’re under 44 and have more than a month’s worth of contributions: Deductions range from 13% if you retire two years ago to 2.81% if you retire one month ago.
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If you have made contributions for more than 44 years and six months, discounts can range from 24% if you retire four years early to 4.75% if you retire one year early.
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Now, if you have contributed less than 38 years and six months, the penalties range from 30% for four years of down payment to 5.50% for one year of down payment.
Although these numbers may seem discouraging, they are crucial to making an informed decision. It’s also vital to understand that all of these reducing coefficients depend on your salary, whether you’re salaried or self-employed, and how you’ve contributed to Social Security throughout your career years.
Conclusion: Is it worth it to anticipate retirement in 2024?
It can be tempting to anticipate retirementBut it is very important to have knowledge. panorama pension What is expected in 2024 requires reflection about our financial situation and life prospects. While the freedom to retire early may be appealing, the costs involved are tangible. Make sure you weigh the pros and cons before deciding to take a well-deserved break.