Two retirees stress that working longer “keeps people active and lowers the cost of pensions”
“They tell me to walk the grandchildren or look at the works. But for the first I have all the time and the second has never interested me». Miguel Solano sarcastically justifies why he chose to continue working after retirement. “I would have continued in my position, but the system doesn’t want me. There is no place for 72-year-old workers,” he says. Therefore, when the time came to hang the consultant’s badge in the company, he was first drawn to volunteering and then found the legal formula to combine his retirement with a paid activity.
«It was clear to me that I didn’t want to become self-employed in order to avoid VAT invoicing, so I am taking a course in electronic administration, an educational activity that does not require social security contributions. If you enter less than the equivalent of the minimum wage, 14,000 euros per year, you do not have to report that,’ he explains. That is why Solano always closes the year between the 8,000 and 10,000 euros that he earns thanks to his conferences, the YouTube channel he has and publications such as the ‘Dictionary of concepts and terms of electronic administration’. “The rest of the activities I do selflessly,” he adds.
Solano has opted for one of several ways retired work is possible: “It’s great when you resist it. If you have an active mind and strength, it serves to channel the enthusiasm and the knowledge gained». It also has some relevant advantages. “I have my own agenda, I don’t have to put up with ‘bastard’ customers and I can say what I want without fear of political correctness,” he jokingly underlines.
Francisco, who prefers not to reveal his last name, also works after retirement. Moreover, nine years ago he was one of the first to opt for active retirement. “A friend told me about it and I was interested. When I asked about it, Social Security didn’t even know how to handle it,” he recalls.
However, Francisco retired for a short time, because after a few years he was offered a relevant position in an official institution, incompatible with his status, and he decided to return to the labor market. “I was four years old before returning to take advantage of active retirement. Everything went well with one exception: because of this new professional period, my benefit had to be increased and I had to resort to recognition,” he says.
Now he manages a venture capital fund, receives half of the pension that comes with him and contributes as a self-employed person thanks to his income. “From the start, I was clear that I wanted to sleep peacefully, that I wanted to do everything legally. Active retirement is very positive because it keeps people active while their mental and physical health is good and the costs of pensions are reduced,” he says.
Francisco, of course, recognizes that it is only attractive to those who intend to earn at least an average income. “If they pay you half of the pension, after paying taxes and contributions you should at least earn enough to make up for that cut, which can discourage many. It must be adjusted to the actual income.”
Solano agrees. «Active pension works well if you collect the interims. The system puts up significant hurdles for those with middle incomes because if someone offers you $30,000, since Social Security is going to cut your pension in half, it assumes you’re going to earn about $20,000 less and may not reimburse you.” , To explain.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
