For the National Social Security Institute, the amount of the retirement pension is calculated on two pillars that are, the regulatory base, which acts as 100% of the pension to which you are entitled and the total of quoted years, which determine what percentage of that 100% corresponds. Next to them, retirement age is the third decisive factor. This not only defines the moment of retirement, but can also modify the amount. In fact, Social Security allows the pension to be increased to those who decide to take their ordinary age, that is, working beyond this to achieve a benefit even greater than 100% that would initially correspond to them.
As explained by Law 27/2011 (which can be consulted in this Official State Gazette), in Spain there are two retirement ages, one 65 years for what you have to have a minimum of quoted years (now with 38 years and three months) and another progressive, which will increase every year until 2027 that will be 67 years old (in 2025 it is in the 66 years and 8 months).
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In this way, workers who, when they reach their ordinary age, decide to continue working, can access the benefits of delayed retirement. This benefit is not optional, that is, it depends on the will of the worker, so social security cannot force extending beyond the ordinary age.
Table with the pension that can be charged for delaying the retirement age depending on the quoted years and regulatory base
Workers who decide to take advantage of delayed retirement will be able to enjoy economic incentives for each extra quoted year. These bonuses may be between an additional life percentage (that is, for a lifetime), a unique payment (“check”), or a combination of both.
In the case of the single payment, Social Security pays an amount to so much raised, a “check”, to suddenly compensate all years of delay. In the case of choosing the additional percentage, this adds to the pension every month for a lifetime. This extra depends on the total of years quoted when reaching the ordinary retirement age, the following being:
- Additional 4% for each year of delay for those who accredit 37 or more quoted years.
- Additional 2.75% for each year for those between 25 and 37 years quoted.
- Additional 2% for each year for those who are under 25 years quoted.
Next, it shows how the pension would be applying these benefits. For examples, it is assumed that the worker has quoted more than 37 years, so 4% incentive corresponds.
| Regulatory base (initial monthly pension) | Years of delay | Monthly increase (4%) |
New pension (over 37 years quoted) |
Monthly increase (2.75%) |
New pension (25-37 years quoted) | Monthly increase (2%) |
New pension (less than 25 years quoted) |
Option 2: Single payment (approx.) |
|---|---|---|---|---|---|---|---|---|
| € 1,500.00 | 1 year | € 60.00 | € 1,560.00 | € 41.25 | € 1,541.25 | € 30.00 | € 1,530.00 | € 7,707.00 |
| 2 years | € 120.00 | € 1,620.00 | € 82.50 | € 1,582.50 | € 60.00 | € 1,560.00 | € 15,414.00 | |
| 3 years | € 180.00 | € 1,680.00 | € 123.75 | € 1,623.75 | € 90.00 | € 1,590.00 | € 23,121.00 | |
| 4 years | € 240.00 | € 1,740.00 | € 165.00 | € 1,665.00 | € 120.00 | € 1,620.00 | € 30,828.00 | |
| € 1,700.00 | 1 year | € 68.00 | € 1,768.00 | € 46.75 | € 1,746.75 | € 34.00 | € 1,734.00 | € 8,262.14 |
| 2 years | € 136.00 | € 1,836.00 | € 93.50 | € 1,793.50 | € 68.00 | € 1,768.00 | € 16,524.29 | |
| 3 years | € 204.00 | € 1,904.00 | € 140.25 | € 1,840.25 | € 102.00 | € 1,802.00 | € 24,786.43 | |
| 4 years | € 272.00 | € 1,972.00 | € 187.00 | € 1,887.00 | € 136.00 | € 1,836.00 | 33,048.57 | |
| € 1,900.00 | 1 year | € 76.00 | € 1,976.00 | € 52.25 | € 1,952.25 | € 38.00 | € 1,938.00 | € 8,817.29 |
| 2 years | € 152.00 | € 2,052.00 | € 104.50 | € 2,004.50 | € 76.00 | € 1,976.00 | 17,634.57 € | |
| 3 years | € 228.00 | € 2,128.00 | € 156.75 | € 2,056.75 | € 114.00 | € 2,014.00 | € 26,451,86 | |
| 4 years | € 304.00 | € 2,204.00 | € 209.00 | € 2,109.00 | € 152.00 | € 2,052.00 | 35,269.14 | |
| € 2,100.00 | 1 year | € 84.00 | € 2,184.00 | € 57.75 | € 2,157.75 | € 42.00 | € 2,142.00 | € 9,372.43 |
| 2 years | € 168.00 | € 2,268.00 | € 115.50 | € 2,215.50 | € 84.00 | € 2,184.00 | € 18,744.86 | |
| 3 years | € 252.00 | € 2,352.00 | € 173.25 | 2,273.25 | € 126.00 | € 2,226.00 | € 28,117.29 | |
| 4 years | € 336.00 | € 2,436.00 | € 231.00 | € 2,331.00 | € 168.00 | € 2,268.00 | 37,489.71 € | |
| € 2,300.00 | 1 year | € 92.00 | € 2,392.00 | € 63.25 | 2,363.25 | € 46.00 | € 2,346.00 | € 9,804.27 |
| 2 years | € 184.00 | € 2,484.00 | € 126.50 | € 2,426.50 | € 92.00 | € 2,392.00 | € 19,608.54 | |
| 3 years | € 276.00 | € 2,576.00 | € 189.75 | € 2,489.75 | € 138.00 | € 2,438.00 | € 29,412.81 | |
| 4 years | € 368.00 | € 2,668.00 | € 253.00 | € 2,553.00 | € 184.00 | € 2,484.00 | 39,217.09 € | |
| € 2,500.00 | 1 year | € 100.00 | € 2,600.00 | € 68.75 | € 2,568.75 | € 50.00 | € 2,550.00 | € 10,112.81 |
| 2 years | € 200.00 | € 2,700.00 | € 137.50 | € 2,637.50 | € 100.00 | € 2,600.00 | € 20,225.63 | |
| 3 years | € 300.00 | € 2,800.00 | € 206.25 | 2,706.25 | € 150.00 | € 2,650.00 | € 30,338.44 | |
| 4 years | € 400.00 | € 2,900.00 | € 275.00 | € 2,775.00 | € 200.00 | € 2,700.00 | € 40,451,26 | |
| € 2,700.00 | 1 year | € 108.00 | € 2,808.00 | € 74.25 | 2,774.25 | € 54.00 | € 2,754.00 | € 10,421.36 |
| 2 years | € 216.00 | € 2,916.00 | € 148.50 | € 2,848.50 | € 108.00 | € 2,808.00 | € 20,842.71 | |
| 3 years | € 324.00 | € 3,024.00 | € 222.75 | € 2,922.75 | € 162.00 | € 2,862.00 | € 31,264.07 | |
| 4 years | € 432.00 | € 3,132.00 | € 297.00 | € 2,997.00 | € 216.00 | € 2,916.00 | 41,685.43 | |
| € 2,900.00 | 1 year | € 116.00 | € 3,016.00 | € 79.75 | € 2,979.75 | € 58.00 | € 2,958.00 | € 10,729.90 |
| 2 years | € 232.00 | € 3,132.00 | € 159.50 | € 3,059.50 | € 116.00 | € 3,016.00 | € 21,459.80 | |
| 3 years | € 348.00 | € 3,248.00 | € 239.25 | € 3,139.25 | € 174.00 | € 3,074.00 | € 32,189.70 | |
| 4 years | € 464.00 | € 3,364.00 | € 319.00 | € 3,219.00 | € 232.00 | € 3,132.00 | 42,919.60 | |
| € 3,100.00 | 1 year | € 124.00 | € 3,224.00 | € 85.25 | € 3,185.25 | € 62.00 | € 3,162.00 | € 11,038.44 |
| 2 years | € 248.00 | € 3,348.00 | € 170.50 | € 3,270.50 | € 124.00 | € 3,224.00 | 22,076.88 | |
| 3 years | € 372.00 | € 3,472.00 | € 255.75 | € 3,355.75 | € 186.00 | € 3,286.00 | 33,115.32 | |
| 4 years | € 496.00 | € 3,596.00 | € 341.00 | € 3,441.00 | € 248.00 | € 3,348.00 | 44,153.77 | |
| € 3,267.60 | 1 year | € 130.70 | € 3,398.30 | € 89.86 | € 3,357.46 | € 65.35 | € 3,332.95 | € 11,297.00 |
| 2 years | € 261.41 | € 3,529.01 | € 179.72 | € 3,447.32 | € 130.70 | € 3,398.30 | 22,594.00 | |
| 3 years | € 392.11 | € 3,659.71 | € 269.58 | € 3,537.18 | € 196.06 | € 3,463.66 | € 33,891.00 | |
| 4 years | € 522.82 | € 3,790.42 | € 359.44 | € 3,627.04 | € 261.41 | € 3,529.01 | 45,188.00 |
In this sense, 100%can be exceeded, that is, it would not be limited by overcoming the full pension, but not if it exceeds the maximum pension set by the government. That is, we must bear in mind that the pension cannot exceed the maximum limit in 2025, about 3,267.60 euros per month. Although you have generated the right to a greater amount, it will be limited to that figure, but what happens in these cases?
What happens if my pension surpasses the maximum pension?
In the event that after applying the social security calculation method, the resulting pension was greater than the maximum pension, the additional incentives it generates are paid in a special way so that they can enjoy them. In this sense, that right to a greater pension is not lost, since the law contemplates two ways to receive this bonus:
- An annual economic complement: the additional percentage that cannot be added to the monthly pension (because it is already ranked) is transformed into an extra payment that is received every year, for life. For example, if you correspond to you an additional 4%, it is calculated on the annual amount of the maximum pension.
- A unique payment to both raised (check): as an alternative, you can choose to receive all the accumulated benefit in a single payment at the time of retirement. This “check” has the great advantage of being exempt from IRPF.
Below is a comparative table of how these benefits would apply to someone who already has the right to the maximum pension.
| Incentive option when delaying retirement | Description of the benefit | Practical example (1 year of delay with maximum pension of ~ 3,267.60 €) |
|---|---|---|
| Annual economic complement | You charge your maximum monthly pension and, in addition, you receive an extra payment every year. | You would receive € 3,267.60 per month + an annual payment of € 1,830 approx. |
| Single payment (check) | You charge your maximum monthly pension and, in addition, you receive a unique payment when retirement. | You would receive € 3,267.60 per month + a check of about € 11,297 (tax free). |