A person collecting money in Spain refers to a special situation for citizens over 52 years old related to retirement. This subsidy, aimed at supporting elderly unemployed individuals, has undergone notable changes in its link to early retirement. The updates were enacted in the law dated March 12, 2019.
Before these legislative changes, recipients of this support were required to draw on early retirement benefits. In other words, once they reached the minimum age for early retirement, they had to transition from subsidies to a pension, even if that pension amount was smaller than what they would receive if they retired at the ordinary retirement age.
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This arrangement posed difficulties for many, because early retirement, coupled with a reduced pension, penalized those who faced job loss later in their working lives.
With the latest amendments, the process has gained significant flexibility. Those receiving assistance who are over 52 now have the option to retire early or to wait until the normal retirement age. This change matters because it enables individuals to make better-informed choices based on personal needs and life plans. In fact, the Ministry of Labor and Social Economy states that, if conditions remain met, the option can extend not only to the early retirement date but also to the normal retirement date.
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Choosing to continue the subsidy until the normal retirement age allows beneficiaries to maximize their eventual pension. Early retirement remains available, but it is no longer mandatory; many people who prefer to work longer can increase their pension amount, providing relief to those who would otherwise face financial pressure.
This legislative change also reflects a deeper understanding of the economic and social realities faced by older workers. By removing the mandatory early retirement requirement, the measure acknowledges diverse personal circumstances and respects individuals’ autonomy in deciding their financial and professional futures.
How much is the allowance for people over the age of 52?
The ministry specifies the amount: it equals 80% of the Public Indicator for Multi-Impact Income (IPREM), which this year stands at 600 euros per month. This amount applies even when unemployment occurs due to the loss of a part-time contract. The regulations also indicate that the reduction for subsidy recipients is being eliminated.
Finally, the guidance notes that to receive benefits for those over 52, other conditions outlined in the law must also be met. Specifically, individuals must have paid unemployment contributions for at least six years. At the time of application, applicants must declare that all conditions except age are fulfilled to be eligible for the retirement pension funded by SSK contributions.
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Early retirement or not
It is important to consider that choosing between early retirement and waiting for the normal retirement age is a significant decision that should not be taken lightly. Each option carries its own financial and personal consequences. Early retirement can be suitable for those who need immediate income or have health considerations, while waiting may yield a larger pension for those who can continue working or support themselves financially for longer.