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Will the retirement age reach 72 years in Spain? So it will be in Europe

Date: May 23, 2024 Time: 09:23:59

The retirement age is one of the issues that most concern Spaniards. Hence the efforts of the coalition government to ensure that pensions are linked to the rise in the CPI. In the month of July, Social Security allocated a record amount of 12,017.8 million euros to the payment of the ordinary monthly payroll of contributory pensions, which means that the Ministry of Inclusion, Social Security and Migrations, led by José Luis Escrivá The departure occurred in 10.8% more than the same month of 2022.

The Department headed by Escrivá estimates that pension spending stood at 11.7% of GDP in the last twelve months, the same percentage as in 2022. After the rise in pensions with the CPI applied since the beginning of the year, the average pension increased in July by almost 9.6% year-on-year, up to 1,375.1 euros per month.

A few weeks ago, the Círculo de Empresarios will proclaim to the future Government the voluntary delay of the retirement age, said proposal would extend the retirement age to a section between 68 and 72 years. “If you retire earlier, there would be a slight reduction in your pension and if you retire later, an incentive,” explained the organization’s president, Manuel Pérez-Sala, at a press conference.

This proposal by businessmen, together with the increase in pension spending over the last year, raised many critics and dissenting voices, but above all it was destined to set off all alarm bells. Is it possible for Spain to increase the retirement age to 72? What are the differences in the retirement age with other European countries?

The current retirement age in Spain

In 2023, the legal age to take advantage of ordinary retirement in Spain is set at 66 years and four months, for those who prove less than 37 years and nine months of contributions. On the other hand, if that time is greater, the interested party may benefit from the pension at 65 years of age. In the case of voluntary early retirement, it is necessary to prove, at least, 37 years and nine months, to be able to access 64 years, or 63 years, if 37 years and nine months or more have contributed.

In addition, it must be taken into account that, to determine the amount of the pension, the general percentage that corresponds according to the years of contribution is applied to the regulatory base. Added to this is the fact that the additional percentage for prolonging working life is key if the professional retires after the normal current age has passed, and the reduction coefficient determined. However, the calculation of the benefit will vary depending on the personal circumstances and professional career of each one.

At what age do Europeans retire?

With the current figure, Spain is among the European countries with the highest retirement age. Exceeding the Spanish data, we find countries such as Denmark, Greece, Italy, Bulgaria, Norway and Iceland whose retirement age is extended to 67 years. The Netherlands (66 years and 10 months) and Portugal, which has several months less (66 years and four months), are in a band very similar to the national one.

On the opposite side is Austria, which is the country with the lowest retirement age set at 62 years. France with 62 years and three months and Slovakia with 63 years complete the podium.

Exceptionally, there are countries such as Romania in which gender can make a difference in terms of age, since the retirement age mark for men is 65, while for women it is 62 years, a situation that also occurs in Croatia or Switzerland.

Upcoming increases in the retirement age

The clearest and most imminent case is the neighboring country. France has experienced harsh waves of protests for the new reform of the Macron government a few months ago, which many consider to be “the unpopular pension reform” that delays the retirement age to 64 years. An age that is far from the current situation in Spain (66 years and 9 months), and much more than that proposed by the Círculo de Empresarios, which would establish it at 72 years.

But the French country will not be the only one to extend the retirement age. Denmark will extend retirement to 69 years, increasing the current figure by two years in one fell swoop. The United Kingdom, for its part, will rise to 68 years. And countries like Germany and Belgium will follow the Spanish trail until they are 67 years old, and 67 years and three months for the Netherlands.

The same will happen in countries with a lower current retirement age. Slovakia will reach the age of 64 that France proposes. And Estonia, Latvia, Lithuania, Finland, Malta, the Czech Republic and Austria will advance to age 65.

In countries where gender determines the retirement age, something totally different could happen. In these countries, such as Croatia and Switzerland, the age is extended to achieve the same age, that is, so that both sexes share the retirement age. In the case of Romania, it would only increase the retirement age of women up to 64 years, since the age limit in this country is 65 years, which is the one that coincidentally is the one for men.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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