Early retirement is the retirement method that allows us to enjoy the pension before reaching our ordinary retirement age, that is, the moment at which we should stop working. In this way, since the pension is enjoyed before and for a longer time, Social Security establishes that the amount must be reduced and therefore applies a reducing coefficient. These coefficients will be in the form of a percentage and will be higher or lower depending on the modality, whether it is voluntary or involuntary, the total years of contributions and the months advanced with respect to the ordinary age.
This is stated in article 208 of the General Law of Social Security (can be consulted in this BOE), which establishes that voluntary early retirement is that which comes from the will of the worker and that allows the ordinary retirement age to be advanced up to two years.
In Spain, two retirement ages coexist depending on the total years of contributions, which is regulated by Law 27/2011. In 2026, those who have 38 years and three months of contributions can retire at age 65. In the case of not reaching these contributions, the age will be 66 years and 10 months, but taking into account that in 2027 it will rise to 67 years. Therefore, those workers with these contributions will be able to retire from the age of 63.
In order to retire at age 65, Social Security requires a minimum of 35 years of contributions, of which two must occur in the 15 years prior to the application. Furthermore, it is necessary that the resulting pension, that is, after applying the calculation method, be higher than the minimum pension that would correspond to you at age 65 and depending on your family situation (whether or not you have a dependent spouse).
After applying the calculation method, which has changed in 2026, the General Social Security Law explains that it will apply reducing coefficients. These coefficients in percentage form will vary depending on “the credited contribution period and the months in advance.” That is, the more months advanced and the fewer years and months worked, the higher the coefficient will be.
At this point you have to think about whether or not you deserve to retire early in exchange for suffering cuts in the amount. At this point there is no certain answer, since everything depends on the economic and personal situation of each worker.
The reducing coefficients for retiring early at 63 and 64 years of age
The cuts in the amount of workers’ retirement pension range from 3.26% to 21%. In the following table you can consult the reducing coefficients for voluntary early retirement:
| Months that the pension is advanced | Less than 38 years and 6 months of contributions | Between 38 years and 6 months and 41 years and 6 months of contributions | Between 41 years and 6 months of contributions and 44 years and 6 months of contributions | More than 44 years and 6 months of contributions |
|---|---|---|---|---|
| 24 (2 years) | 21% | 19% | 17% | 13% |
| 23 | 17.6% | 16.5% | 15% | 12% |
| 22 | 14.65% | 14% | 13.33% | 11% |
| 21 | 12.57% | 12% | 11.43% | 10% |
| 20 | 11% | 10.5% | 10% | 9.2% |
| 19 | 9.78% | 9.33% | 8.89% | 8.4% |
| 18 | 8.8% | 8.4% | 8% | 7.6% |
| 17 | 8% | 7.64% | 7.27% | 6.91% |
| 16 | 7.33% | 7% | 6.67% | 6.33% |
| 15 | 6.77% | 6.46% | 6.15% | 5.85% |
| 14 | 6.29% | 6% | 5.71% | 5.43% |
| 13 | 5.87% | 5.6% | 5.33% | 5.07% |
| 12 (1 year) | 5.5% | 5.25% | 5% | 4.75% |
| 11 | 5.18% | 4.94% | 4.71% | 4.47% |
| 10 | 4.89% | 4.67% | 4.44% | 4.22% |
| 9 | 4.63% | 4.42% | 4.21% | 4% |
| 8 | 4.4% | 4.2% | 4% | 3.8% |
| 7 | 4.19% | 4% | 3.81% | 3.62% |
| 6 | 4% | 3.82% | 3.64% | 3.45% |
| 5 | 3.83% | 3.65% | 3.48% | 3.3% |
| 4 | 3.67% | 3.5% | 3.33% | 3.17% |
| 3 | 3.52% | 3.36% | 3.2% | 3.04% |
| 2 | 3.38% | 3.23% | 3.08% | 2.92% |
| 1 | 3.26% | 3.11% | 2.96% | 2.81% |
That is, when a worker decides to advance the maximum (24 months), the adjustment is the most severe:
- 21% if you have less than 38 years and 6 months of contributions.
- 19% if you prove between 38 years and 6 months and 41 years and 6 months.
- 17% if you add between 41 years and 6 months and 44 years and 6 months.
- 13% if you reach 44 years and 6 months or more.
Now, it is not necessary to wait years to reduce the percentage, since in many cases, it is enough to wait a few more months for the cut to be reduced appreciably. For example, if instead of retiring 24 months early the worker retires 19 months in advance, the coefficient drops suddenly and reaches much more contained levels:
- 9.78% with less than 38 years and 6 months of contributions.
- 9.33% between 38 years and 6 months and 41 years and 6 months.
- 8.89% between 41 years and 6 months and 44 years and 6 months.
- 8.40% with 44 years and 6 months or more.
If the idea is to stretch a little more and retire 15 months early, the cut falls again and is especially noticeable when the career is long:
- 6.77% with less than 38 years and 6 months of contributions.
- 6.46% between 38 years and 6 months and 41 years and 6 months.
- 6.15% between 41 years and 6 months and 44 years and 6 months.
- 5.85% with 44 years and 6 months or more.
And when the advance is limited to one year (12 months), the scenario is already different: the coefficients remain in even lower margins and, in comparative terms, much more acceptable:
- 5.5% with less than 38 years and 6 months of contributions.
- 5.25% between 38 years and 6 months and 41 years and 6 months.
- 5% between 41 years and 6 months and 44 years and 6 months.
- 4.75% with 44 years and 6 months or more.
Pension cuts in euros: up to 705.52 euros less per month
To understand it better, an example can be given with the maximum pension, which in 2026 is set at 3,359.60 euros per month. If the worker decides to advance retirement by 24 months, that is, the maximum allowed in the voluntary modality, the cut is the highest. In the worst scenario, with a 21% reduction, the loss would be 705.52 euros per month and the pension would remain at 2,654.08 euros per month. On the other hand, if the worker is over 44 years and six months, the applicable coefficient is 13%, the cut would be 436.75 euros per month and the pension would go to 2,922.85 euros.
The difference is noticeable when the worker does not push the maximum and waits a few more months. For example, if instead of retiring 24 months early you do so 19 months early, the cut decreases clearly. With a coefficient of 9.78%, the reduction would be 328.57 euros per month and the pension would remain at 3,031.03 euros. And if the applicable cut were 8.40%, the monthly loss would be 282.21 euros, leaving the pension at 3,077.39 euros.
Finally, if the worker decides to advance only one year, that is, retire 12 months early, the cuts are even more moderate. With a 5.5% reduction, the adjustment would be 184.78 euros per month and the pension would be 3,174.82 euros. And with 4.75%, the cut would be 159.58 euros per month, so the final pension would be 3,200.02 euros. Add that if the resulting pension exceeds the maximum pension, other types of coefficients would be applied.