In the cases of voluntary early retirementwhich takes place at the employee’s request, the minimum age for employees who do not reach 37 years and six months of contributions is raised to 64 years and two months, but remains at 63 years for the remainder.

For the involuntary early retirementresulting from involuntary termination of employment, the retirement age is 62 years and two months for workers under the age of 37 years and six months of contributions, while remaining at 61 for workers reaching that quota.

The pension reform has also made changes affecting early retirement.

One of the main innovations of the reform of the pension system of Law 21/2021 relates to the reduction coefficients of the pension depending on the date when retirement is expected. In addition, the reform also contains a number of incentives for later retirement.

Conditions for early retirement

These coefficients are now calculated for each month in advance (rather than quarterly) and applied to the pension rather than the regulatory base. The reduction coefficients depend on the specified period and the number of months you have advanced at the time of retirement.

From 2024, in those cases of early retirement by the interested party, in which the statutory assessment base is higher than the limit of the pension amount, the reduction coefficients will be applied to the limit of the original pension amount.

On the other hand, in 2022 the reasons for which a person can take advantage of this type of retirement have been expanded: (i) Termination of the contract by the free will of the worker. In this case you must have received or have a legal right to receive the relevant compensation; (ii) All reasons for an objective dismissal; (iii) Women who quit their jobs because they have been victims of gender-based violence.

The Expert’s Opinion

Maica Enrique, General Manager of GM Integra HR

“Just a few months ago, Law 21/2021 of December 28 was published. This is the rule to ensure the purchasing power of pensions and other measures to strengthen the financial and social sustainability of the public pension system.

Among the main regulatory changes envisaged by the recent law, the application of the new revaluation method stands out, in which the pensions are increased according to the average annual inflation of the previous year.

In the years when the CPI is negative, the pensions remain unchanged, in no case their amount is reduced.

The calculation of the regulatory pension base takes into account the assessment bases of the last 25 years of contributions.

The new regulations have also brought changes with regard to early retirement, be it a voluntary decision or an enforced one. With this in mind, the application reduction coefficients were modified, which are no longer applied on a quarterly basis but on a monthly basis.

The retirement age in 2022 is set at 65 for workers with 37 years and 6 months or more of contributions, and 66 years and 2 months for workers with less than that.

Even until the next regulatory change in the pension calculation method (expected for 2023), it is the current intention of the legislator to continue to encourage the postponement of the retirement age (and at the same time to penalize anticipation of it). ).

Raúl Cerejido Barba, Ejaso ETL Global Contributor


With the entry into force of Law 21/2021 guaranteeing the purchasing power of pensions and other measures to strengthen the financial and social sustainability of the public pension system, retirees finally see the purchasing power of pensions guaranteed.

In addition, the sword of Damocles will be eliminated, replacing the possibility of applying the sustainability factor provided for in the previous regulations, which was unfair to young people and unsuitable for the demographic challenge of the coming decades, with a new mechanism intergenerational equity, limited in time and financed by an increase in the Contributions paid mainly by employers.

Apart from these two measures, strongly demanded by trade unions and pensioners’ associations, the reform fundamentally affects voluntary early retirement and severely penalizes those who take 24 or 23 months in advance, so if you want to retire early, postpone retirement by two months (22 months earlier instead of 24) can mean up to 6.3% more pension.

From 2024, the maximum pensions in the event of voluntary early retirement will also be sanctioned, since from this point in time the reduction factor for early retirement will be applied gradually to the pension and not to the regulatory assessment basis until it is completed in 2033, so that people who retire early from 2022 Those who want to retire and whose statutory assessment basis is higher than the maximum pension may experience a reduction in their effective pension.