SPANISH PENSION: Important Changes In 2020; The retirement age in Spain is delayed and the calculation of the pension varies

REFORMS in Spain continue to impact Spanish pensions.

The entry into the new decade will led to changes in the retirement age in Spain and also the years contributed into the social security system to determine the benefit. The measures are automatic, and form part of the 2011 reform which gradually delays the retirement age to 67.

As it stands, for those who turn 65 years old in 2020 and have contributed 37 years or more, he or she will be able to retire at 65.

In the case of partial retirement, where one combines work and benefit, the minimum will be 61 years and 10 months if that person has contributed to the system for 35 years or more.

The retirement age will gradually increase over the next few years from 65 to 67.

In December 2019 there were 6,089,294 retirement pensioners in Spain, with an average benefit of 1,143.55 euros per month. The current government had originally promised that they would increase pensions by 0.9% however, the measure will not be taken until the definitive Governing body is formed.

In regards the actual calculation of the pension to be received, it was previously calculated taking the last 15 years worked into account, however as of this new decade, the state pension will be calculated on the last 23 years contributed instead and by 2022, the state pension will be calculated taking into account the last 25 years worked.

As Euro Weekly News understands, another measure that will have a strong impact on the system is the arrival of the sustainability factor, which will be applied from 2023 and will gradually cut back on new pensions, based on the view that pensioners will live longer. A criterion that was originally intended to be implemented in 2019.

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Written by

Cristina Hodgson

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