New retirement age requirement. Spaniards will need to have 38 years and 3 months of contributions to be able to retire at 65 in 2025, 3 months more than the previous requirement. Those who do not reach that number will be able to retire if they turn 66 years and 8 months during the year, 2 months more than in 2024. This change is included in the pension reform from the last decade.
These figures may vary depending on the different retirement entry modalities, such as partial or early retirement.
Partial retirements
Workers who wish to access partial retirement without a replacement contract from their company will have to wait until they are 66 years and 8 months old, according to the deadlines set for 2025.
On the other hand, if the company establishes a replacement contract and someone covers the hours that are no longer worked, they will be able to partially retire at the age of 62 years and 8 months if they have contributed for more than 36 years and 3 months, or at the age of 63 years and 4 months if they have at least 33 years of contributions.
Early retirement
In 2025, workers will be able to access early voluntary retirement up to 24 months before reaching the legal retirement age, provided that they have contributed for at least 35 years. This means that the minimum age to take advantage of this option will be 64 years and 8 months, although those with a longer work history will be able to retire at 63 years old.
On the other hand, in cases of involuntary early retirement, such as layoffs or reasons beyond the worker's control, it will be possible to advance the retirement up to 48 months before the ordinary age, setting the minimum age at 62 years and 8 months for those who have contributed for at least 33 years, or 61 years for longer career paths.
In both voluntary and forced retirement, Social Security will apply reducing coefficients, discounts, to the pension, depending on the months in advance and the years contributed. These coefficients range from 30% with four years in advance to 0.50% with one month in advance, but the percentage to apply will also depend on the contribution record: the more years contributed, the lower the percentage of discount on the pension, and with fewer years contributed, it increases.
On the other hand, those who decide to delay their retirement past the legal age will receive bonuses, such as an additional 4% in annual pension or a lump sum amount.
Changes in regulations
Some of the changes implemented by the Government and social agents during the month of July still need to be legally developed. These reforms are mostly based on determining the objective circumstances that allow for the establishment of reduction coefficients to lower the retirement age.
Novelties are being sought to be introduced in delayed retirement, partial retirement, and the compatibility between work and pension. In the case of delayed retirement, an additional incentive is considered for every six months of delay from the second year onwards, instead of the twelve months currently established. Furthermore, the margin for advance retirement is extended from two to three years, although with limits on the reduction of working hours. Additionally, improvements are made to the figure of the replacement worker, whose contract must be indefinite, full-time, and in a non-replaceable position.
The reform also introduces a new system to combine work and pension. Workers who delay their retirement will be able to receive an increasing percentage of their pension while continuing to work: 45% with one year of delay, 55% with two, 65% with three, 80% with four, and 100% with five years. The impact of these measures will be evaluated once they come into effect.