Workers who delay their retirement may collect an additional percentage of 4% for each full year of contributions from the date on which the legal retirement age was reached. They may also replace said increase with a lump-sum amount for each additional full year quoted or combine both options.

Law 21/2021, of December 28, guaranteeing the purchasing power of pensions, which came into force on January 1, 2022, among other measures, offers better benefits to people who choose to delay their retirement.

What is delayed retirement?

La jubilación demorada es la posibilidad de que, una vez cumplida la edad ordinaria de jubilación, las personas trabajadoras (por cuenta ajena o cuenta propia) prolonguen su vida laboral, pudiendo así acceder a una serie de beneficios en su futura pensión de jubilación.

Requirements to access delayed retirement

There are three requirements to be met and they must be met at the time of accessing the retirement application:

  • Not having reached the age of 70.
  • Have covered a minimum contribution period of 15 years.
  • Have reached the retirement age for the current year.

What’s new in 2022 regarding delayed retirement?

  • Extinction for the company to contribute due to common contingencies, with the exception of temporary incapacity (regarding employees who have reached the age of access to the retirement pension). The exemption will also include contributions for unemployment, Salary Guarantee Fund and professional training. The periods in which this exemption is applicable will be computed as quoted for the purposes of access and determination of the number of benefits.
  • Self-employed workers aged 65 or over will be exempt from contributing to social security, except for temporary disability and professional contingencies.
  • The payment of an economic supplement is stipulated for those workers who continue to be active for each year that they delay their retirement age despite the fact that, at the time of reaching the ordinary retirement age, they met the requirements that would allow them to access it. . This supplement may be received at the choice of the interested party, in one of the following ways:
    • An additional percentage of 4% over each full year contributed between the date on which the retirement age was reached and the event giving rise to the pension.
    • A lump-sum amount for each full year of contributions between the date on which said age was reached and the age of the event giving rise to the pension. This single payment will be between a minimum of 4,786.27 euros and a maximum of approximately 12,060.12 euros.
    • A combination of the previous two.

Passive classes and delayed retirement

If you belong to the passive classes, you can also opt for delayed retirement. Remember that you can also opt for an additional 4% in the pension for each extra year, a single payment between a minimum of €4,786.27 and a maximum of approximately €12,060.12, or a combination of both.

What benefits do companies have according to the delayed retirement of their workers?

Companies will be exempt from contributing to common contingencies, except for the temporary disability of workers who decide to extend their working life.

In addition, companies will have a 75% reduction in the contribution during situations of temporary disability of workers who have reached the age of 62.

Are there any limitations?

This type of retirement is incompatible with other forms of retirement such as flexible, early and active.

If you need the help of an expert about delayed retirement, do not hesitate to contact our team.