Social security will limit the pensions of all workers whose regulatory base exceeds the maximum pension, even if they are 40 years quoted

Upon reaching the retirement age, many workers who have long careers and high contribution bases wonder what their retirement pension will be, without taking into account that Social Security can apply some type of cut or limitation. In this sense, the public pension system in Spain establishes a maximum pension that is the amount that no contributory pension can exceed, regardless of the quoted years, of the amount of the regulatory base and even if two pensions are charged at the same time.

This is so, as stated in article 57 of the General Social Security Law (it can be consulted in this BOE), which establishes that “the initial amount of social security pensions may not exceed the monthly full amount that annually establishes the corresponding Law of General State Budgets”. That is, there are a number of stops that cannot be overcome.

Now, like any rule and more in the public pension system that is so dynamic and flexible, there are exceptions that allow to overcome that stop.

How does the maximum pension limit apply?

To apply this limitation, first social security uses the current method of calculating pensions, in which the regulatory base is first calculated, which is 100% of the pension to which you are entitled. Then, it will be determined to what percentage of said 100% is entitled depending on the total of quoted years (remember that to be 100% entitled it is necessary to be 36 years and six months quoted).

With this, if the resulting pension were higher than the maximum pension established at that time by the Government, Social Security will limit said amount to the maximum amount. In 2025, it is set at 3,267.60 euros or 45,746.40 euros.

The difference, therefore, does not pay or generate any additional right, which means that it is not a “cut” on an acquired right, but a stop that applies in the initial calculation of the provision.

In the case of early retirement, both voluntary and involuntary, it must be taken into account that if the theoretical pension calculated exceeds the maximum pension set for that year, the reducing coefficients apply in a specific way. That is, in this case the maximum limit will not be collected, since a reduction on it is applied.

Practical example

To understand it better, a practical example would be that of a worker who accesses retirement with 40 years quoted and a regulatory base of 3,500 euros per month. Theoretically, a 100% pension of that base would correspond to him, that is, 3,500 euros. However, if the maximum pension limit for that year is 3,175.04 euros per month, so the social security will recognize and pay will be 3,175.04 euros, unable to exceed the legal limit.

Exceptions

Now, there are two situations in which the maximum amount can be overcome. The first is that the pensioner is entitled to Complement for gender gap reductionwhich will add to the maximum pension.

On the other hand, if the pensioner has delayed his ordinary retirement age, that is, he has accessed what is known as delayed retirement. This also allows to exceed the maximum pension limit either as an additional percentage or as an annual amount amount if the pension was already bump.