New Retirement Age from 1 January 2020. As a result of the amendment to the Pension Act (2011), the retirement age is gradually being raised to 67 in 2027.
This situation is the result of a transitional provision which indicates the retirement age and the contribution period required each year until 2027, when the age will be 67.
New Retirement Age until 2027
It was in 2011 that the pension reform was approved, introducing a progressive delay. But it was not until 2013 that the transitional regime began to be applied with a time horizon of 2027. The objective was and is that the retirement age will reach 67.
Initially, it was raised by one month for each year up to 2018. But, as of this fiscal year, it has begun to be delayed by two months per year.
Thus, this progressive model is as follows:
Therefore, as of January 1, 2020, the ordinary retirement age is delayed to 65 years and ten months.
Working people who can prove that they have contributed for 37 years or more will be able to retire at 65 with 100% of their pension.
The number of years taken into account for calculating the pension will also be increased in 2020. This will be set at 23 years for that year. From the year 2027, the entire working life will be taken into account.
From 1 January, the age for early retirement will also be changed, and will be delayed to 63 years and 10 months.
In the case of forced retirement, which can be taken up to four years before the legal age for ordinary retirement, it will be increased to 61 years and 10 months, with at least 33 years of contributions having to be accredited, and the penalty will be 1.875% per quarter in advance (for workers with less than 38 and a half years of contributions) and 1.5% if contributions are accredited as being over 44 and a half years old.
If you have any questions, you can contact the experts of our Labor Consulting department.
Arrabe Integra
Labour Consulting Dpt.
