If I am fired at age 63, can I collect unemployment benefits or should I retire?

If I am fired at age 63, can I collect unemployment benefits or should I retire?

The workers who are fired at 63 years old They find themselves in a situation where they doubt if they should retire or, on the contrary, apply for contributory unemployment benefits (commonly known as unemployment). Unlike other ages, at 63 years of age there is the possibility of collecting unemployment or retiring (both voluntarily and involuntarily), but as long as the contribution requirements established by Social Security are met, as it is a advancement of retirement age.

It is common for questions to arise such as: “If I am fired at age 63, can I collect unemployment?” or “what happens with a dismissal over 63 years of age?” In this age group, re-entry into the labor market is usually very complex, so it is important to know and know which option is best among access early retirement or, instead, collect unemployment benefits until reaching ordinary age.

Retire at 63

Social Security allows advance the ordinary retirement age through voluntary and involuntary early retirement. In voluntary early retirement, advances of 24 months compared to the ordinary age. In this way, the worker would need to have sufficient contributions to retire at the age of 65.

According to the Law 27/2011in 2025 the ordinary retirement age will be 65 years for those workers who have contributed a minimum of 38 years and three months. If these contributions are not reached, the age will be 66 years and 8 months (this age will increase progressively until 67 years in 2027).

Therefore, to retire at age 63 with the voluntary modality, you would have to have the years of contributions that allow you to access the ordinary age of 65 years, that is, have 38 years and 3 months of contributions.

It is also possible to retire early involuntarily (beyond the worker’s control). This allows advances of up to 48 months with respect to the ordinary age. Therefore, if we have been fired for some of the reasons that justify access to the involuntary modality and we have contributed for at least 33 years throughout our working life, it will be possible to access this modality.

It must be taken into account that this modality entails the application of reducing coefficients on the pension. These cuts can vary depending on the months that retirement is brought forward compared to the ordinary age, reaching up to 21% in voluntary early retirement and up to 30% in involuntary retirement.

Collect unemployment at age 63

To access the contributory unemployment benefit at age 63it is necessary have paid unemployment insurance for a minimum of 360 days within the last six years to the unemployment situation. Furthermore, it is necessary that this loss of work has been involuntary or that it falls within one of the assumptions established by the SEPE.

The duration of unemployment It will depend on the contributions accumulated in the last six years, and may range between 4 months and 2 years. For its part, the amount It is calculated based on 70% of the regulatory base during the first six months and 60% from the seventh month. This regulatory base is obtained from the average of the contribution bases for the 180 days prior to the unemployment situation, taking into account that there are maximum and minimum amounts.

Another important aspect is that, while unemployment is collected, contributions for retirement pension. As detailed by the SEPE (State Public Employment Service) on its website, the gross amount of the benefit includes the Social Security contribution, as well as the IRPF withholdings that could correspond. This contribution base will be 70% of the regulatory base during the first six months of unemployment and 60% from the seventh.

Collect the subsidy for those over 52 years of age

At 63 years of age it is also possible to access the subsidy for those over 52 years of age. To do this, it is necessary to have at least 15 years of contributions to Social Security, of which 2 must have contributed to the general regime and have paid unemployment contributions for at least 6 years throughout their working life.

This subsidy can be collected until a new job is found or, if not found, until the ordinary retirement age. In addition, it has an amount equivalent to 80% of the IPREM (Multiple Effects Public Income Indicator), which in 2025 amounts to 480 euros per month.

Furthermore, while this aid is received, retirement contributions are made for 125% of the minimum base in force each year. In 2025, the minimum base is 1,323 euros, so that contributions are made on 1,653.75 euros per month, thus helping to ensure that the amount of the future pension is affected as little as possible.