It is possible to keep working and receive money from your pension plan once retired. There are different systems that allow for this and here we are going to show you all of them.
According to the National Office of Statistics, of these 61% are retired, 25% are receiving a widow's pension, 10% a disability pension, and 4% an orphan's pension. So there are more than 5,185,000 retired people in Spain. Can they continue working and receive money from their pension plan? The answer is yes for the following pension types:
Ordinary: When the retirement age established by law is reached (67 years in 2027) and the state pension is received while still working.
Early: It is also possible to receive money from your pension plan if you have retired early and also have a job.
Flexible: This is designed for pensioners who have completely retired but now wish to return to active life. That is, they fully return to the labour market, returning to a job situation they had abandoned. A new work contract is signed, which can be full-time or part-time. It is important to remember that the person employing someone choosing flexible retirement cannot be the same employer they had prior to retirement.
Partial: In this case, it is the worker who, being of legal retirement age, continues to work but with a reduction in working hours of between 25% and 50%. The employment contract has to be part-time with a company. They must meet all the requirements to obtain a contributory pension, that is, demonstrate a minimum contribution period: 15 years, two of which must be included within the 15 years prior to the causal event.
Active: In the case of the active pensioner -someone retiring at the ordinary age and with enough contributions for a full pension- it is possible to work full-time or part-time and receive up to 50% of the pension for the duration of the contract (once this ends they will receive the full pension).
Granted by an organisation other than Social Security: Those workers, for example from a professional association, who on reaching the normal retirement age wish to combine this with a part-time or full-time job.
Deferred: In the case of deferred retirement, where someone has not effectively retired, it is not possible to redeem the pension plan for retirement. An express provision is needed to be able to dispose of the money from the pension plan if the person continues working once retired.
Frequently Asked Questions
On reaching retirement and starting to receive the state pension, you can opt to continue adding to your savings and not redeem the pension plan. You can even continue making regular or one-off contributions if you wish. In this way, your savings continue to work for you and you can redeem them at a later date, when you need them.
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