The new option that workers who choose delayed retirement can take advantage of

On Tuesday, the government approved in the Council of Ministers two measures related to retirement to complete the reform of the retirement system. One of these measures relates to Late retirement incentivesthe formula with which Minister Escrivá wants to encourage workers to delay their retirement.

Until now, those who continued to work after years of contributions made it into retirement could choose one of two formulas:pay rise 4% per year of subscriptions or a check which is paid in one go.

You can only choose one of the two formulas, but after the cabinet approves the royal decree, workers who delay their retirement Between 2 and 10 years will have a new option It is a new method.

This option It is already available from May 18thas defined by the Bank of England and can be applied to pensions whose causal event is after this day.

The new option for those choosing late retirement

this It consists of a combination of the two options above and consists of a combination of both. This way they will receive pension increase by 2% For each additional working year in the covered period and at once Equivalent to half of what would be compatible with them if they only chose check.

The example given by the Department of Social Security is that if retirement is delayed by 11 years or more, the incentive would be a single payment applied to 5 years of the delay period and an increase of 2% of the pension for each year of delay. .

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According to the data, the effective retirement age in Spain is 64.8 years, with 5.4% registering to retire in 2022. In 2023, 1,148 new retirees chose the individual payment averaging €13,100.

Early retirement measures for people with disabilities

In addition to the changes made to the file early retirementThe Cabinet also approved measures related to early retirement for persons with disabilities.

It consists of improving access to early retirement for people with disabilities by more than 45% and reducing the required contribution period from recognition of disability from 15 to 5 years.

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