How to retire early at age 63: this is the amount of the pension you have left

Retiring before retirement age can be a very attractive option for those workers who, tired of a life of work, decide to retire to enjoy their time. To do this, they must meet certain requirements that, if met, allow them to retire early even at 63 years of age.

The people turning 63 in 2022 They should know that with the arrival of the new year, changes have been introduced in the pension system that may affect their early retirement. The main one is the new retirement age, which has increased slightly: it is now 65 years for workers who have contributed 37 years and six months and 66 years for the rest. This will be the age that serves as a reference to calculate early retirement.

This is voluntary early retirement at age 63

The most frequent case is that of voluntary early retirement, which takes place by express wish of the worker. In order to benefit from it at age 63, said worker must be registered (or similar situation) and up to date with Social Security payments. You must also have contributed those 37 years and six months (of which two must occur in the last 15 years) that leave the ordinary retirement age at 65 years: the voluntary early retirement modality only allows advances of two years in retirement .

Once these requirements are fulfilled, the worker will have the right to retire early at the age of 63. The calculation of your pension will be done as with the rest of retirees, and in 2022 there will also be some other change: the regulatory base is obtained by adding the contribution bases of the last 25 years (300 months) and dividing them by 350.

With the regulatory base calculated, the next step is to find out what percentage of it one is entitled to: at 15 years it is 50% and from then on, for each of the following 106 months, an additional 0.21% is obtained and for each of the subsequent 146 months an additional 0.19%. This means that 100% of the regulatory base is obtained at 36 years of age, and this is what happens to workers who want to retire early and voluntarily at 63 years of age, since they need an even higher contribution to achieve it.

However, the counterpart of early retirement is that the pension must be subjected to reduction coefficients that have been modified by the ‘Escrivá reform’, both in amount and in nature: now they are monthly and directly affect the amount of the pension. These coefficients are different depending on the duration of the worker’s career, but in the sections with the greatest advance (those that involve retirement at age 63, the first year of advance) they entail cuts of between 4 and 21%.

This is involuntary early retirement at age 63

The early retirement of the worker can also come involuntarily from the age of 63. It is the so-called retirement derived from the involuntary cessation of work and that can be done up to four years of ordinary retirement. In addition to being registered with Social Security, the worker needs a minimum of 33 years of contributions (of which two must be in the last 15), have been registered as a job seeker for at least six months and have been dismissed from his company for reasons of “business restructuring”.

The pension calculation method is applied in the same way as in the previous case: the regulatory base with the bases of the last 25 years divided by 350 and the percentage of that regulatory base based on the years of contributions.

With the ‘Escrivá reform’ this early retirement is also affected by the retouching of the reduction coefficients, which are also monthly, applicable to the amount of the pension and different depending on the duration of the career. The cut sections that can be had at 63 years of age (they will be different depending on the person’s retirement age) entail cuts of between 5 and 22%.

This is the early retirement of the Passive Classes at 63 years of age

There is another option for the worker who reaches the age of 63: belonging to the staff of the Passive Classes of the State. These professionals have the option to retire early from the age of 60 if they prove 30 years of service. The percentage of your regulatory credit (your regulatory base) depends on the years previously worked in the service of the State: at 30 years of age, you have 81.73% and it rises year after year, up to 100%, which is achieved at 35 years of age.

These personnel include career civil servants or interns from the General State Administration, the Administration of Justice, the General Courts or other constitutional or state bodies transferred to the Autonomous Communities, as well as career military personnel, former presidents of the Government, former vice presidents or former ministers.

This is early retirement by reason of the profession at 63 years

Lastly, if the worker performs a profession classified as risky due to its danger, arduousness or toxicity You can retire early with special reduction coefficients that would depend on your specific profession, since there are regulations for each one of them. In some cases, early retirement is allowed even from the age of 52.

These professions are firefighters at the service of an administration, local police, member of the Ertzaintza, miner, railway worker, bullfighter, artist, airline worker… Social Security has a list on its website with links to the regulations that regulate each of their early retirements.