The voluntary early retirement It is the modality that allows workers to advance retirement up to a maximum of two years with respect to the ordinary age, in such a way that it is enjoyed before the pension. Social Security applies cuts to the amount in the form of a percentage called reducing coefficients. The percentage depends on both the months advanced and the total number of years contributed throughout one’s working life. In this way, for those who have contributed more than 41 years and six months, the penalty can reach 17% of the pension if they decide to retire two years early.
The seventh transitional provision of the General Social Security Law is the one that establishes the retirement age in Spain. In 2026, the age will be 65 years for those who prove 38 years and three months of contributions or more, and 66 years and 10 months for the rest. This means that those who decide to retire early of their own free will can do so at 63 years of age, those who should do so at 65, and those who have set retirement at 66 years and ten months at 64 years and ten months.
Now, Social Security asks for something more than having only 15 years of contributions (generic deficiency) and asks for having a minimum of 35 years of contributions without computing the proportional part of extraordinary payments and, in addition, that the resulting amount of the pension exceeds the minimum pension that, due to family situation, would have corresponded to turning 65 years of age.
Now, why is such a high cut applied even to those who have been contributing for more than 41 years? The explanation is in the spirit of Law 21/2021, which reformed the system to align the effective age with the ordinary age. The organization seeks to discourage voluntary advancement and favor longer contribution periods, which is why the coefficients in this modality are more severe than in involuntary early retirement. Even so, the table itself rewards those who have contributed for more years with a progressively smaller penalty.
The cut ranges between 21% and 2.81% depending on the years listed
The reduction coefficients applicable to voluntary early retirement vary between 21% and 2.81%, depending on the months in advance and the four contribution brackets established by the standard. Workers with longer careers receive the lowest cuts, in line with the system’s philosophy of rewarding permanence.
The applicable percentages according to the years of contributions and the advance notice chosen are as follows:
- Less than 38 years and six months of contributions: the cut is 21% if the advance is two years, 14.67% with 22 months, 11% with 20 months and 5.5% if one year in advance.
- Between 38 years and six months and 41 years and six months of contributions: the reduction is 19% for two years in advance, 14% for 22 months, 10.5% for 20 months and 5.25% for one year.
- Between 41 years and six months and 44 years and six months of contributions: the cut reaches 17% if retirement is brought forward two years, 13.33% if it is 22 months, 10% if it is 20 months and 5% if it is only brought forward one year.
- More than 44 years and six months of contributions: the penalty drops to 13% with two years in advance, 11% with 22 months, 9.2% with 20 months and 4.75% if the advance is one year.
| Retirement months early | With less than 38 years and 6 months of contributions | Contributed period equal to or greater than 38 years and 6 months and less than 41 years and 6 months | Contributed period equal to or greater than 41 years and 6 months and less than 44 years and 6 months | Contributed period equal to or greater than 44 years and 6 months |
|---|---|---|---|---|
| 2 years – 24 months | 21% | 19% | 17% | 13% |
| 23 months | 17.6% | 16.5% | 15% | 12% |
| 22 months | 14.67% | 14% | 13.33% | 11% |
| 21 months | 12.57% | 12% | 11.43% | 10% |
| 20 months | 11% | 10.5% | 10% | 9.2% |
| 19 months | 9.78% | 9.33% | 8.89% | 8.4% |
| 18 months | 8.8% | 8.4% | 8% | 7.6% |
| 17 months | 8% | 7.64% | 7.27% | 6.91% |
| 16 months | 7.33% | 7% | 6.67% | 6.33% |
| 15 months | 6.77% | 6.46% | 6.15% | 5.85% |
| 14 months | 6.29% | 6% | 5.71% | 5.43% |
| 13 months | 5.87% | 5.6% | 5.33% | 5.07% |
| 1 year – 12 months | 5.5% | 5.25% | 5% | 4.75% |
| 11 months | 5.18% | 4.94% | 4.71% | 4.47% |
| 10 months | 4.89% | 4.67% | 4.44% | 4.22% |
| 9 months | 4.63% | 4.42% | 4.21% | 4% |
| 8 months | 4.4% | 4.2% | 4% | 3.8% |
| 7 months | 4.19% | 4% | 3.81% | 3.62% |
| 6 months | 4% | 3.82% | 3.64% | 3.45% |
| 5 months | 3.83% | 3.65% | 3.48% | 3.3% |
| 4 months | 3.67% | 3.5% | 3.33% | 3.17% |
| 3 months | 3.52% | 3.36% | 3.2% | 3.04% |
| 2 months | 3.38% | 3.23% | 3.08% | 2.92% |
| 1 month | 3.26% | 3.11% | 2.96% | 2.81% |
Cases in which the pension is not cut
Law 21/2021 establishes that any advance over the ordinary age, even by a single month, entails the application of a reducing coefficient in the voluntary modality. The regulations, however, contemplate taxed exceptions. No reduction is applied to workers with a recognized disability equal to or greater than 45%, in cases where regulations determine a significant reduction in life expectancy, or 65%, pursuant to article 206 bis of the consolidated text of the General Social Security Law.
Nor does it penalize the pension when the advance derives from activities of an exceptionally painful, toxic, dangerous or unhealthy nature, included in article 206 of the same rule. This group includes professions such as firefighters, local police, miners or personnel in the maritime-fishing sector, which have recognized specific coefficients to anticipate retirement without affecting the percentage applicable to the regulatory base.