Retirement is a right recognized by Social Security for workers who meet the age and years of contribution requirements. Specifically, it is required to have a minimum of 15 years of contributions and, this year, the worker must have reached at least 66 years and 4 months or 65 years for those who have 37 years and 6 months of contributions.
These conditions give the right to receive a retirement pension, a contributory benefit that will be obtained throughout the years worked. However, those who want to retire before the legal age established at all times -since 2013 a transitional period has been applied that raises the retirement age each year-, can resort to early retirement.
In this way, the worker begins to collect the pension before time, but will receive a lower import than what would correspond to him. Social Security establishes two forms of early retirement: voluntary or derived from non-voluntary termination of work. The penalty applied to the pension varies according to the modality and depending on how many months retirement has been brought forward.
Voluntary early jubilation
Voluntary early retirement is available to all workers with a maximum age of two years less than the required age at that time. In other words, in 2023 those who have reached 64 years and 4 months or 63 years of age who have more than 37 years and 6 months of contributions may request it.
Of course, the worker must also have at least 35 years of contributions -two of which must have contributed at least in the 15 years prior to requesting retirement- and they will also be required to have the right to a pension import greater than the amount of the minimum pension that would correspond to him if he reached the legal retirement age.
Once these conditions are met, the worker who requests it will receive the pension that corresponds to him – according to the years of contribution and his contribution base – less the reduction coefficient that corresponds to him. This coefficient varies between 2.8% and 21%. It increases for each month that retirement is brought forward and is higher for those who have contributed for fewer years.
Thus, for example, whoever opts for voluntary early retirement just two years before (24 months) will be subject to a 21% penalty if they are less than 38 years old and have 6 months of contributions, while the penalty will be 13% if they are older. 44 years and six months quoted.
forced early jubilation
Forced early retirement, for its part, is recognized when it derives from the involuntary termination of work. That is, the worker is left without a job through no fault of his own. In this case, early retirement will be possible up to four years before the legal age. This year it will be required to have completed at least 62 years and 4 months or 61 years who will have more than 37 years and 6 months of contributions.
In addition, it is required to have a minimum period of 33 years of contributions -two of which must have contributed at least in the 15 years prior to requesting retirement-, be registered with Social Security and have been registered as a job seeker since, at least six months before applying for retirement.
Once the requirements are met, the pension that the retired worker receives will also be penalized. Months in advance and years of contributions are also taken into account, although the reduction coefficients are different from those applied in the case of voluntary early retirement. If early retirement is forced, the minimum penalty will be 0.5% and the maximum 30%.
For example, a worker who requests this type of retirement two years before the legal age will see their retirement penalized by 15% if they have contributions for less than 38 years and 6 months or 12% if they add more than 44 years and 6 months.
In either case, Social Security establishes a limit so that with early retirement the pension received is less than the maximum pension. Thus, it establishes that, once the reduction coefficients have been applied, the resulting amount may not exceed the maximum pension minus 0.5% for each quarter before retirement.