Apply an adjustment percentage based on the years of contributions
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Apply an adjustment percentage based on the years of contributions
Apply an adjustment percentage based on the years of contributions
Once the regulatory base is obtained, you must apply an adjustment percentage based on the years listed. And it is that to receive 100% of the pension it is necessary to have contributed a minimum number of years.
In 2020, the minimum contribution period to collect 100% of the pension is 36 years for those who retire at the ordinary age, although it will gradually increase until 2027.
| Year | Minimum contribution periods to collect 100% of the pension |
|---|---|
| 2020 to 2022 | 36 years |
| 2023 to 2026 | 36 years and 6 months |
| As of 2027 | 37 years |
For those who do not meet these minimums, the pension is calculated as follows: with 15 years of contributions you are entitled to 50% of the regulatory base, and an additional percentage is added for each month of contributions until reaching 100%.
This additional percentage also varies depending on the year in which you retire.
| Application period | first 15 years | Additional months quoted | Additional monthly coefficient |
|---|---|---|---|
| 2020 to 2022 | fifty % | 1 to 106 146 to 252 | 0.21% 0.19% |
| 2023 to 2026 | fifty % | 1 to 49 209 to 258 | 0.21% 0.19% |
| As of 2027 | fifty % | 1 to 248 248 to 264 | 0.19% 0.18% |
Pension if you had contributed €1,000 per month for 30 years
Thus, if the pensioner in the example had contributed for 30 years (360 months) and retired in 2020, he would receive a pension of 86.32% of the regulatory base (which was €857.14). That is €739.88. 50% for the first 15 years listed and 36.32% for the rest.
Keep in mind that, even if according to these calculations you have a very low pension, you would never receive less than the minimum contributory pension set by law.
In 2020, the minimum pensions are:
- With dependent spouse: €11,807.60 per year (14 payments of €843.40)
- Without dependent spouse: €11,807.60 per year (14 payments of €843.40)
- With non-dependent spouse: €9,081.80 (14 payments of €648.70)
And how is early retirement calculated?
When calculating the retirement pension, the possibility of early retirement must also be taken into account, which can be requested up to two years before the ordinary age (and in other circumstances) provided that certain requirements are met, such as having contributed at least 36 years (in 2027, 37 years) and that the resulting pension exceeds the minimum pension.
However, you must have it, although it implies a loss of a percentage of the pension for each quarter that you have stopped contributing.
| quoted time | Quarterly reduction coefficient |
| Less than 38 years and 6 months | two % |
| Between 38 years and 6 months and 41 years and 6 months | 1.875% |
| Between 41 years and 6 months and 44 years and 6 months | 1,750% |
| More than 44 years and 6 months | 1.625% |
How the sustainability factor will affect when calculating the retirement pension
The sustainability of the pension system has forced different governments to undertake several reforms that influence the calculation of pensions. The most important of them is the sustainability factor, which will not come into force until at least 2023, and will link the number of pensions with the life expectancy of the population.
So, now that you know how to calculate your pension, you can better plan your retirement without surprises or surprises.
