What is the difference and how does it affect the pension?

What is the difference and how does it affect the pension?

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It is possible to combine the contributory retirement pension with self-employment or someone else’s work, under certain conditions and provided that certain requirements are met. Partial or flexible retirement allow this situation. Although both have the common objective of reconciling the receipt of the pension with income from part-time work, they also present differences between them.

Social Security indicates that partial retirement is the one started after the 60th birthdaySimultaneous with a part-time employment contract, it may be through a relief contract or not. While the flexible is the one that allows compatibility, once caused, the retirement pension with a part-time contract. That is, the main difference between the two is that the partial allows the pension and work to be reconciled before entering retirement, the possibility of partial early retirement, and the flexible one will be applied once the person has already acceded to retirement, early or ordinary, but decide to return to the job market.

To determine the pension in the case of partial retirement, the percentage of reduction of working hours to the amount of the pension that would correspond, according to the contribution years accredited by the worker. This amount may not be less than the amount that results from applying the same percentage to the amount of the minimum pension in force at any time for retirees over 65, according to the retiree’s family circumstances. Furthermore, despite the fact that the worker benefits from this option before the legal retirement age, no reduction coefficients will be applied to the pension.

In the case of flexible retirement, the amount of the pension to be received will be reduced in inverse proportion to the reduction in working hours made by the pensioner, relative to that of a comparable full-time worker. The reduction of the amount of the pension will take effect from the day the activities begin.

In both cases, when the worker decides to retire full-time, he will receive 100% of the pension to which he is entitled will be subject, which also will be revalued. In this way, the contributions made in the activities carried out, during the partial suspension of the receipt of the retirement pension, will have effects for the improvement of the pension, once the cessation of work has occurred.

The requirements to request one or another modality also vary. In the case of partial retirement it is an option for workers from the age of 60, however, this modality differentiates between those who have signed a relief contract and those who have not. Thus, in the first case, it will suffice to comply with the 60 in the case of mutualists or 62 years and 8 months for the rest to access the partial pension, although you must have a reduction in working hours of between 25 and 75% of full time, prove at least six years of service in the company and a minimum contribution period of 33 years, generally.

Conversely, if a relief contract has not been signed You must wait until you reach the ordinary age, although you may have a part-time or full-time contract, also with a reduction in working hours of between 25 and 75%, and the minimum contribution period required will be 15 years, without need to have seniority in the company.

In the case of flexible retirement, to be able to request it, the interested party must have previously acceded to retirement and now have a part-time contract. The working day reduction limit is between a minimum of 25% and a maximum of 50%. Consequently, the retiree must work between 75% and 50% of the full-time work day.


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