Retiring early is a dream of many workers despite the fact that this type of retirement implies a reduction in the amount of the pension, something that many employees are willing to assume, but that can be done in an optimal way if the regulations are well known.
No one knows the law better than the Social Security officials who are in charge of managing the applications that come into their hands. One of them, Alfonso Muñozhas explained on his YouTube channel that, although it may seem strange, It is not advisable to retire early two years in advancethat is, the maximum time allowed in the case of voluntary early retirements.
In the video, Muñoz recalls that “if we advance our retirement age, as a general rule, Reducing coefficients will be applied to us, that is, a reduction in our pension for life“and warns:”The more months we advance retirement, the greater the penalty will be“.
The official explains that the table of reducing coefficients, which can be consulted in the article 207 of the General Law of Social Securityhas steps that can be played with to ease the impact of cuts. And it refers to a critical date: “By just waiting four months, if we request retirement one year and eight months before, the reduction coefficient drops almost in half“.
Four months of waiting can mean 200 euros more in pension
Muñoz gives a practical example: that of a worker who has been contributing for 38 years and has a regulatory base of 2,000 euros per month. This person, in the case of retiring early, would have very juicy advantages if they wait just four months.
Thus, while if you retire early with 24 months in advance, the maximum, you would be left with a pension of 1,580 euros per month, 21% less than your regulatory base, assuming a cut of 420 euros.
On the contrary, if you wait those four months, that is, if you retire 20 months in advance, you will collect 1,780 euros ‘only’ 11% of the pension, about 220 euros per year. “By just waiting four months we can increase our pension by 200 euros per month for our life“, says Muñoz.
The official warns that the advantages in the case of waiting more months are no longer as juicy, as the 20 months “It is one of the largest steps in the table of reducing coefficients” and from that moment on “the percentages are reduced more proportionally.”
YouTube Video
