Sunday, May 28

The Government extends the benefits for delaying retirement: the new payment and an increase in the pension can be combined

The Council of Ministers has regulated two developments in pension matters. As Pedro Sánchez announced yesterday Monday, the Government has facilitated early retirement for people with a disability of more than 45% through various measures, such as a significant reduction in the minimum contribution period, which will come into force on June 1. On the other hand, Minister José Luis Escrivá has explained that the green light has also been given to an extension of the benefits for the so-called “delayed retirement”, which may combine a payment when accessing the pension as well as an increase in the monthly amount .

Pensions with supplements for delaying retirement increased by 65% ​​in 2022


Delayed retirement is one for which workers continue working beyond the legal age to access the pension. For each year of delay, the Social Security system recognizes benefits for pensioners, which the Government extended in the first phase of the pension reform.

Before, for each year of delay, a plus of an additional 2% was granted in the amount of the pension and the new regulation extended that percentage to 4%. In addition, new incentives were created. The door was opened to receive a single payment at the time of retirement, instead of the pension increase, and a mixed option was also foreseen, through which a payment could be received upon retirement and also a percentage increase in the pension .

This last option was at the expense of a regulation that is the one that has just been approved and will shortly allow access to this modality, explain Social Security sources. Specifically, it enters into force “the day after” the publication of the decree in the BOE and will apply to pensions “whose date of the triggering event is after its entry into force”.

The requirements for the mixed benefit option

The mixed formula with the two benefits will require at least “two full years” of contributions after retirement age. Also “that the minimum of the contribution period is met”.

Regarding the amount of benefits, there are two modalities provided. If “two to ten years” of delay are credited after the moment of ordinary retirement, Social Security will allow the selection of the sum of a “2%” increase in the pension for each year of delay and a payment equivalent “to the half of what would correspond if they opted for the current single payment formula”.

On the other hand, if “11 or more years” of delay are proven, the single payment will be applied over five years of the delay period and “a 2% increase in the pension for each year of delay,” explains Security Social.

As an example, the Ministry offers the following case: a person with a 35-year professional career with a planned initial pension of 1,500 euros per month that will delay his retirement for two years. This person could choose between receiving the 8% increase in the pension, “120 euros per month more”, a single payment of “15,414 euros”, or the mixed modality, which would allow them to receive a payment of “7,707 euros” at the moment of retirement and an increase in the pension of “60 euros per month”.

José Luis Escrivá stressed that “voluntary incentives that can delay the effective retirement age help a lot to strengthen” the pension system. The minister has underlined the increase in this type of delayed retirement, which increased by 65% ​​last year. Almost half, 44% of the total, favored the new single payment option.

In the first quarter of this year, Social Security figures new delayed retirements out of total registrations at almost 8%, when last year the figure was 5.4% and between 2014 and 2021, an average of 4 .7%

People with disabilities

On the other hand, the Government has facilitated access to early retirement for people with a disability greater than 45% through three measures, explained José Luis Escrivá. They will enter into force next month, from “June 1”, they respond in the Ministry.

The first improvement involves a very substantial reduction in the minimum contribution period required from the declaration of disability, which goes from 15 years to five.

Secondly, it is allowed to “add” disabling pathologies. “If ailments that add up to 45% are jointly accredited, it will be understood that the disability is greater than 45%”, summarized in the Social Security.

Lastly, the Government “simplifies and streamlines” the procedure for determining the pathologies that give the right to this early retirement, the minister stressed. “A report from IMSERSO or from the competent body of the CCAA” will no longer be necessary, but it can be accredited through “a medical report” where it is proven that one of the pathologies contemplated has been suffered and the date of onset or manifestation of the same.

The calculations of the Executive is that the approved package “double” the number of people who will be able to benefit from this type of early retirement. “In 10 years it will benefit 6,000 people,” they calculate in Social Security, an amount that would be half without these changes, they explain in Escrivá’s department.

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