Annual early retirement filings declined by 7.63% from January through July. After the pension reform took effect in 2022, voluntary early retirements were encouraged to be postponed for several months, and pension registrations were moved to a monthly cadence rather than quarterly.
Within this framework, 57% of voluntary early retirements registered up to July were delayed within the quarter, while the reform aimed to boost pension amounts under prior rules, according to Social Security data included in the 2023 budget.
From January to July, there were 67,581 new entrants into the pension system, a 7.63% drop compared with the same period a year earlier. Of these, 35,683 entries (3.32% fewer) corresponded to voluntary early retirements with a discount coefficient applied.
Voluntary early retirement can be requested up to two years before reaching the official retirement age. The reform applies larger discount coefficients to those who reach 24 and 23 months before the legal age, while at 22 months the discount is reduced, making postponement by two months prudent.
The discount coefficients also increase during the three months immediately preceding the legal retirement age, though to a lesser extent.
The value of early retirement benefits has traditionally exceeded expectations. A gap has widened over the last decade due to a drop in the average amount of unanticipated loans between 2013 and 2018, with the difference rising from around 200 to about 400 euros per month (1,700 euros versus 1,300 euros).
Consequently, new hires have tended to align downward toward the overall pension average.
Delayed retirement is growing
The delayed retirement approach, which offers a financial incentive for each year of postponement, rose by 5% between January and July, totaling 10,187 registrations versus the same period last year.
Among those who delayed retirement in 2022, 41.8% were self-employed and 58.2% were employees. Although the likelihood of deferral varies by group, self-employed individuals deferred more frequently, signaling a shift in the composition of delayed retirements within the general regime.
The weighted average delay across all cases is 2.6 years. The longer the contribution history, the shorter the delay tends to be, reducing the average to 3.16 years for contributors with up to 25 years of contributions and 2.22 years for careers exceeding 37 years.
From delayed retirements triggered by the 2021 retirement law, 86.6% chose a higher pension percentage of 4% for each overdue year, while 13.4% opted for a lump-sum payment.
Those who selected the single payment received an average of 6,841 euros for one delayed year, 13,957 euros for two delayed years, and 21,897 euros for three delayed years. Common conditions behind these choices often relate to financial planning needs and anticipated longevity. In rare cases where retirement is mandatory—primarily for self-employed individuals—amounts exceeding 130,000 euros have been paid after delays ranging from 16 to 29 years, highlighting the wide range of outcomes in delayed retirement programs. (Source: Social Security budgets and program data)