More early withdrawals at the end of 2022 to take advantage of this year’s 8.5% pension increase
The legal retirement age from this Sunday, January 1 is 66 years and four months to receive 100% of benefits if they are under 37 and contribute for nine months, according to the reform approved in 2013, which gradually increases the retirement age above 15 years from 65 to 67 years. If they have paid contributions for more than 37 years and nine months, employees who want to retire with 100% of the pension must be 65 years old. In any case, they must have contributed for at least 15 years to access the contributory benefit and two of those years must be within the 15 years immediately prior to retirement.
In the last months of 2022, there has been an increase in early retirement among those workers who had little time to reach the statutory retirement age to take advantage of the 8.5% increase in pensions approved for this year. The reduction that retiring before a few months of reaching legal age could mean was more than offset by the 8.5% increase.
With this increase, the maximum payment rises to 3,058 euros, 239 euros more than before. The minimum contributory pensions have in turn increased between 18 and 113 euros per month, ie between 743 and 966 euros for those aged 65 and over and between 638 and 905 euros for those under 65.
The average retirement pension will be EUR 1,367 per month, EUR 107 more, while the average widow’s benefit will increase by EUR 66 per month. For an average widow’s pension, the increase is 66 euros.
The social security system is facing record spending this year that will highlight its sustainability. The sharp increase in benefits of 8.5% coincides with the beginning of the retirement of the ‘baby boom’ generation, the largest in history to reach the pension system. The planned annual social security expenditure exceeds 190,000 million euros, 40% of the general state budget.
PARTIAL PENSION
In the event that employees wish to take part in retirement without the company having entered into a replacement contract, the minimum age for access is the ordinary retirement age applicable in each case.
If the company enters into a care contract to cover the working time that the person taking partial retirement stops working, the minimum age for partial retirement from January 1, 2023 will be 62 years and four months if they have contributed at least 35 years and nine months , or 63 years and eight months if they contributed for 33 years.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
