SELF-EMPLOYED RETIREMENT PENSION

Today we will learn more things about the retirement of the self-employed . When a worker reaches the retirement age he/she can get Access to the pensions depending on the years of contribution and their bases, which in most cases will be lower pension tan for those of a hired worker employed. This is because during the working life, the self-employed usually prefers to contribute for the minimum basis with the intention of paying a lower monthly payment each month. This is either because it will complement that with a private retirement plan or because the decission of avoid to pay in excess due to uncertainty in the future of the working life.

Current retirement system of autonomous.

From January 1st, 2013 , the retirement conditions of self-employed are calculated using the same parameters as for workers in the general scheme :

• Retirement age of self.employed:  65 years and one month, to be increased gradually to 67 years until 2027.

Increasement of retirement age
During the year:	Retirement age
2013	65 years & 1 month
2014	65 years & 2 months
2015	65 years & 3 months
2016	65 years & 4 months
2017	65 years & 5 months
2018	65 years & 6 months
2019	65 years & 8 months
2020	65 years & 10 months
2021	66 years
2022	66 years & 2 months
2023	66 years  & 4 months
2024	66 years  & 6 months
2025	66 years  & 8 months
2026	66 years & 10 months
From 2027 on	67 years

• Voluntary early retirement for workers self-employed is established after 63 years and with at least 35 years of contributions.

 
• Minimum Contribution Period : from 15 years  now up to 25 from 2022 , of which at least 2 must be within the last 15 years of work.

Increasement of mininum contribution time
During the year:	Time contibuted
2013	192 months (16 years)
2014	204 months (17 years)
2015	216 months (18 years)
2016	228 months (19 years)
2017	240 months (20 years)
2018	252 months (21 years)
2019	264 months (22 years)
2020	276 months (23 years)
2021	288 months (24 years)
From  2022 on	300 months (25 years)

 
As we said both age and the minimum contribution period that will increase gradually until 2027 and  2022 . Then for workers who have contributed for 38 years and six months, the retirement age is from 65. For other workers is fixed at 67 years progressively increasing.

What would be the amount of the pension?

Depends on the amount that has been contributed to Social Security and the number of years of contributions. The scale on the basis of the calculation shall evolve from 50% of the base at 15 to 100% of the base at age 37 :

Calculation to Access the 100% of the pension base
Time reference	Scale by contribution months
From 2013 till 2019	Between the 1 & the 163: the 0,21 % 83 following months: the 0,19 %
From 2020 till 2022	Between the 1 & the 106: the 0,21 % 146 following months: the 0,19 %
From 2023 till 2026	Between the 1 & the 49: the 0,21 % 209 following months: the 0,19 %
From 2027 on	Between the 1 & the 248: the 0,19 % Over the 248 month: the 0,18%

 

So that self can get the maximum pension would have to increase from 42 years their contributions to social security to about 500 € and they must also contribute continuously since age 30.

For further details do not hesitate in contact VP ADVISERS.