So you can improve your retirement while you work and collect a pension at the same time

The tendency when reaching ordinary retirement age is to think about retirement, but there are people who for various reasons extend their working lives for a few years. This can be done in different ways, and one of the gentlest ways allows you to combine collecting a part of your retirement pension with doing a part-time activity.

This can be done thanks to the partial retirement, which conceives the compatibility of a retirement pension with a part-time contract. To do this, logically, it is necessary to meet the requirements to receive the contributory retirement pension: a minimum of 15 years worked and that at least two have taken place in the last 15.

As explained by Social Security, the mechanism is as follows: from the age of 65 or 66, the retiree can resume work with a maximum working day between 50 and 75% with respect to that of a worker of the same company hired full time, and a proportional reduction of the same percentage worked to the pension that he was receiving.

During the time in which the pensioner (who for the purposes of coverage of benefits has this condition) carries out his part-time job, he will generate new contributions. Thus, partial retirement offers the possibility of improving the pension of the retiree if he had periods during the last 24 years, which are taken to determine the regulatory basis, of absence from work.

Once your part-time job ends, the calculation of the new regulatory base which must take into account the new quoted periods. If this regulatory base turns out to be lower than the one it had before partial retirement, the highest one will remain.

The new contributions will give rise to a new percentage of the regulatory base (since there are more contributions, you will be entitled to a higher percentage) and, in the case of early retirements, the applicable reduction coefficients will be reduced.

This type of retirement can be applied to all Social Security regimes, except for that of Civil Servants of the State, of the Armed Forces and personnel of the Administration of Justice. Furthermore, it cannot be reconciled with permanent disability pensions recognized after retirement.

This is the method to calculate your retirement pension in 2021

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