Year after year, Spain is involved in the entry into force of measures that affect pensions, all of them approved in different reforms from 2011 to the present.
Changes in age and contribution period to collect 100%
In 2025, as established by the current pension system, the retirement age and the minimum contribution period required for each year will change again, as well as the years of minimum contribution that give the right to collect 100% of the regulatory base of each worker, remaining:
| Year | Contribution periods | required age |
| 2025 | 38 years and 3 months or more Less than 38 years and 3 months | 65 years 66 years and 8 months |
| 2026 | 38 years and 3 months or more Less than 38 years and 3 months | 65 years 66 years and 10 months |
| From 2027 | 38 years and 6 months or more Less than 38 years and 6 months | 65 years 67 years |
Thus, a person who wants to retire under the ordinary retirement option will have to have at least 38 years and three months of working life, if he or she wants to do so at 65 years of age (ordinary age). If he or she does not meet this period, he or she will have to wait until he or she is 66 years and eight months old (legal age). The objective is that, in 2027, the legal age will be set at 67 years.
This change would also affect early retirement, resulting in a delay for those who wish to retire before the age of 65:
- If retirement is voluntary, and the minimum contribution period is not met, the retirement age will rise to 64 years and eight months.
- Whether retirement is involuntary or forced, this will rise to 62 years and eight months for the same reason.
Change in the reduction coefficients for early retirement for certain groups
Those workers who decide to take early voluntary or involuntary retirement and whose regulatory base is higher than the maximum pension will face greater penalties in 2025 with the application of the new coefficient.
Early retirement generally involves reductions in the amount of the pension, which can range from 0,50% to 30%, depending on the number of years of contributions, the number of months in advance of the ordinary age and whether it is voluntary or involuntary. However, if after applying these reductions the resulting amount is above the maximum pension in force, Social Security will apply a new coefficient.
Penalty for early voluntary retirement in 2025 on maximum bases
This coefficient came into force on January 1, 2024, Transitional Provision 34 of Law 21/2021. Until that date, the reduction coefficients for early retirement were applied quarterly, with a reduction of 0,5% for each quarter of early retirement. However, with the entry into force of this regulation, the coefficients began to be applied monthly, making the calculation more precise and, in some cases, resulting in a lower pension. These coefficients will increase progressively each year until 2033, which will make this type of retirement increasingly penalized.
By 2025, penalties for early retirement in which the regulatory base exceeds the maximum pension will range from 0,73% to 5,70% of the maximum pension established for that year.
The percentage varies depending on the number of months the retirement age is brought forward and the number of years of contributions throughout the working life, which means that workers with high regulatory bases will see their maximum pension reduced with a penalty that will be greater than in previous years. The reduction coefficients will be as follows for 2025:
| Months in advance | Quoted: Less than 38 years and 6 months | Quoted: Equal to or greater than 38 years and 6 months and less than 41 years and 6 months | Quoted: Equal to or greater than 41 years and 6 months and less than 44 years and 6 months | Quoted: Equal to or greater than 44 years and 6 months |
| 24 | 7,40% | 7,00% | 6,60% | 5,80% |
| 23 | 6,72% | 6,50% | 6,20% | 5,60% |
| 22 | 6,13% | 6,00% | 5,87% | 5,40% |
| 21 | 5,31% | 5,20% | 5,09% | 4,80% |
| 20 | 5,00% | 4,90% | 4,80% | 4,64% |
| 19 | 4,76% | 4,67% | 4,58% | 4,48% |
| 18 | 4,16% | 4,08% | 4,00% | 3,92% |
| 17 | 4,00% | 3,93% | 3,85% | 3,78% |
| 16 | 3,87% | 3,80% | 3,73% | 3,67% |
| 15 | 3,35% | 3,29% | 3,23% | 3,17% |
| 14 | 3,26% | 3,20% | 3,14% | 3,09% |
| 13 | 3,17% | 3,12% | 3,07% | 3,01% |
| 12 | 2,70% | 2,65% | 2,60% | 2,55% |
| 11 | 2,64% | 2,59% | 2,54% | 2,49% |
| 10 | 2,58% | 2,53% | 2,49% | 2,44% |
| 9 | 2,13% | 2,08% | 2,04% | 2,00% |
| 8 | 2,08% | 2,04% | 2,00% | 1,96% |
| 7 | 2,04% | 2,00% | 1,96% | 1,92% |
| 6 | 1,60% | 1,56% | 1,53% | 1,49% |
| 5 | 1,57% | 1,53% | 1,50% | 1,46% |
| 4 | 1,53% | 1,50% | 1,47% | 1,43% |
| 3 | 1,10% | 1,07% | 1,04% | 1,01% |
| 2 | 1,08% | 1,05% | 1,02% | 0,98% |
| 1 | 1,05% | 1,02% | 0,99% | 0,96% |
These coefficients will increase every year until 2033, when they will reach 21% for cases of voluntary early retirement with an advance of 24 months and less than 38 years and 6 months of contributions.
Penalties for involuntary early retirement on maximum bases
In cases of involuntary early retirement, when the pension, once the reduction coefficients for early retirement have been applied to the regulatory base, exceeds the maximum pension, 0,50% will be applied for each quarter or fraction of a quarter of early retirement on the maximum pension of the system.
However, in some cases, the application of the reduction coefficients established for people with a pension higher than the maximum who access early voluntary retirement may be more favourable than the application of the previous coefficient. In these cases, the Managing Entity will carry out the necessary calculations so that the most beneficial option is applied provided that retirement is brought forward between 1 and 24 months (INSS Management Criterion 4/2024).
Rosa Galvez
Director of the Labor Area of Tomarial
