Lorraine Williamson
New regulations around retirement in Spain will affect those planning to step away from work in the coming years. Here’s what’s changing.
From 2025, Spain will implement new rules for the retirement age. Employees can retire at 65, but only if they’ve made at least 38 years and 3 months of contributions to the Social Security system. For many workers, these changes will have significant implications for when they can leave the workforce.
Who will be affected?
Workers born between 1960 and 1970 are the first group to be impacted. If they meet the required contribution period, they can retire at 65. However, those who fall short of this requirement will have to wait until they reach 66 years and 8 months.
What to expect in 2026
The retirement rules in 2026 will remain largely unchanged. Workers can still retire at 65, provided they have contributed for 38 years and 3 months. If they haven’t, the age of retirement will be 66 years and 10 months.
Changes in 2027
However, significant changes are on the horizon for 2027. From this point, employees can retire at 65, but only if they’ve contributed for at least 38 years and 6 months. Those with fewer contributions will have to wait until they turn 67 to retire.
Early retirement is a possibility, but with a catch
For those looking to retire earlier than the official age, early retirement is an option. However, it comes with a penalty. The earlier you retire, the greater the reduction in your pension. The exact amount depends on how many years you’ve contributed and how early you decide to retire.
To qualify for early retirement, workers must be at least 63 years old and have paid contributions for 38 years and 3 months. If they haven’t reached this age, they must wait until they are 64 years and 8 months, and have contributed for at least 35 years. Importantly, special benefits and contributions made before 1967 will not count.
Planning ahead
The new retirement rules in Spain offer flexibility, but also require careful consideration. Workers should plan ahead to ensure they meet the contribution requirements and understand the financial implications of early retirement.
Also read: Average retirement pension surpasses 1500€ monthly