The retirement pension amount It depends not only on the years of contributions or the contribution bases, but also on the age at which the pension is accepted and even the month in which the pension is requested. Although logic tells us that the longer it takes, the more pension we will collect, this may not be the case. In this sense, Alfonso Muñoz Cuenca, an official at the National Social Security Institute (INSS), explains that the revaluation of pensions can greatly affect the final amount, depending on the month in which the right to the pension is accrued.
To understand how this “paradox” works, the official gives as an example the case of a worker with 44 years and 9 months of contributions and an ordinary retirement age scheduled for December 24, 2026 and who wants to know How much pension would you have left if you decide to retire a year early?. After using the “Your Social Security” simulator, the application shows the big difference (and for the better) of the difference of retiring in December 2025, it can be more profitable than doing so in January 2026.
You may be interested
A 107-year-old retiree speaks clearly: “My mother died when I was one year old and when you lose your boyfriend and your children you realize what matters in life”
Table with the increase in pensions for 2026: this is how the pension would look depending on your salary
The difference between retiring in December or January
Muñoz explains that, “if the worker retired on December 24, 2025, the estimated pension would be 2,110 euros per month.” Now, he adds, “as pensions are revalued from January 1that amount would automatically increase by 2.6%, reaching 2,164 euros per month.”
On the other hand, he continues, “if the retirement were requested on January 24, 2026, the amount would be 2,113 euros per month”, a figure that is not revalued because, as he clarifies, “the pension would be due in 2026 and this amount would be below 2,164 euros.” Consequently, “waiting one more month would be even worse, since I would receive less pension.”
| Retirement simulation | Initial amount (2025/2026) | Revaluation 2026 (2.6%) | Amount 2026 after revaluation | Difference with respect to ordinary retirement |
|---|---|---|---|---|
| Retirement 12-24-2026 (65 years old) | €2,287 | No | €2,287 | — |
| Retirement 12-24-2025 (64 years old) | €2,110 | +54€ | €2,164 | −122€ |
| Retirement 01-24-2026 | €2,113 | No | €2,113 | −174€ |
| Retirement 02-24-2026 | €2,122 | No | €2,122 | −165€ |
| Retirement 03-24-2026 | €2,132 | No | €2,132 | −155€ |
| Retirement 04-24-2026 | €2,145 | No | €2,145 | −142€ |
The official warns that this is because only pensions incurred before December 31 are revalued with the increase approved by the Government for the following year and this detail, as we can see, makes the difference. That is, retiring before the change of year can imply an accumulated gain throughout the life of the pension.
The importance of choosing the right moment
This difference can be important in the long term, since if the revalued pension is maintained for 20 years, those 51 euros per month can translate into more than 12,000 additional accumulated euros.
“There are people who, without knowing it, wait until the following year to retire and end up earning less,” explains Muñoz. For this reason, he insists that it is important to learn how to use the Social Security simulator before making a decision. “With this tool you can see exactly which month is best for you to retire,” he adds.
The official also remembers that each case is different, since factors such as years of contributions, the type of retirement (early or ordinary) and the applicable reduction coefficients according to article 5 of Law 27/2011, which regulates early retirement due to voluntary or involuntary termination, influence.
Why early retirement can be a good option
Although voluntary or involuntary early retirements entail a cut in the pension, it may be a good option in certain situations. In this case we see that stopping work a year before the ordinary age was only 122 euros per month, an amount that many workers value before retiring.
Although cuts in the pension can range from 0.50 to 30%, Muñoz asks the following question: “Is it really worth working one more year to earn only 122 euros difference in the pension?”
What to take into account regarding the revaluation of pensions
Article 58 of the General Social Security Law establishes that the Government updates contributory pensions in accordance with the Consumer Price Index (CPI). This increase applies to all pensions in force as of December 31.
In this way, those who retire in December benefit from the revaluation, while those who retire from January do not, having to wait until the end of the current year. This is important, when inflation is high. Muñoz ends his video by saying that “it is not just about turning old or having the requirements met, but about knowing how to use Social Security tools to choose the exact moment that benefits us the most.”