October brings a significant shift in how retirement is calculated for workers. After a certain age, many people start tallying their years of contributions and estimating how long they must continue before they can retire.
From the first of October, this policy change has been welcomed across workplaces.
Good news for retirees: This will be your new pension starting from 2024
Right now, a contribution-based pension requires a person to have contributed between 15 and 36 years. Once the 15-year threshold is reached, retirement benefits begin. The minimum pension can range from 7,939 to 9,260 euros per year, depending on individual circumstances. When the 36-and-a-half year mark is reached, the maximum can be 42,823.34 euros annually. The question remains: what changes will come into effect on October 1, and how will they affect workers?
In the near term, retirees can anticipate adjustments that align pension calculations with new rules. The changes are designed to reflect a more modern approach to retirement income and to streamline how benefits are determined for different employment patterns.
Retirement news as of October 1
With October arrival, the important adjustment applies to all employees. From that date forward, full-time and part-time job offers will be treated the same when determining the terms of pensions and related benefits.
New date for increase in pensions: Pensioners will be happy
Under a royal decree published in the Official State Gazette, this framework will form the basis for calculating pensions for retirement, disability (both permanent and temporary) and maternity or child care.
Now, both full-time and part-time workers will contribute on the same terms.
Joy of retirees: The most anticipated change in pensions
What does this change mean for workers?
The update is expected to speed up access to the required contributions to receive a pension, prioritizing days worked over stated hours in the calculation of benefits.
Who is affected by this new measure?
Analysts estimate that the reform will benefit around two million workers who have reduced or partial days of work. The adjustment is part of a broader government effort to bolster incomes as the new pension system is rolled out in the coming year.