Retiring early, late or part-time, and what changes

Key rules

• Voluntary early retirement: You need at least 35 years of contributions and a reduced pension above the minimum pension that applies at 65.
• Involuntary early retirement: You need dismissal for objective reasons, 6 months as a registered jobseeker and at least 33 years of contributions.
• Delay bonus: With at least 15 years of contributions, each full year of delay earns a bonus.
• Partial retirement: It is only for employees, not the self-employed.
• Early pensioners: Working while drawing a pension is not open if you retired early.

The short version

Retiring early cuts your pension for life. Retiring late adds a bonus. Partial and active retirement let you keep working while you draw some pension, but each has conditions. Exact ages and percentages follow a yearly transition schedule, so run the Social Security simulator before you decide.

Voluntary early retirement

You can retire up to about two years before the ordinary retirement age. The ordinary age rises gradually to 67. It stays at 65 if you have 38 years and 6 months of contributions.

You need:

• At least 35 years of contributions, with at least 2 of them in the 15 years before you retire.
• A reduced pension that is still higher than the minimum pension that would apply at 65.

The pension is reduced for each month (earlier rules used each quarter) you retire early. The cut is smaller the more years you have contributed. Resigning does not qualify you for involuntary early retirement, but you can still use this voluntary route if you meet the conditions.

Involuntary early retirement

This route is for people who lost their job through no fault of their own. You can retire up to four years before the ordinary age. You need:

• Dismissal for economic or similar objective reasons, such as a collective dismissal, an objective dismissal or insolvency.
• Registration as a jobseeker for at least 6 months.
• At least 33 years of contributions.

The pension is still reduced, with a lower cut for longer careers and a cap at a maximum pension. Shorter careers face the biggest cuts. Resigning does not qualify.

Retiring after the ordinary age

If you have at least 15 years of contributions and keep working past the ordinary age, you get a bonus for each full year of delay. You choose one of three options:

• A higher pension for life, of 4% for each year.
• A lump sum, based on the years you delayed and your pension.
• A mix of both.

The percentage increase can take your pension above the usual maximum. The decision below helps you choose. Confirm the lump-sum scale with the Social Security office (INSS) before you pick.

Partial retirement

Partial retirement means a part-time job plus a partial pension. It is open to employees, not the self-employed.

• Without a relief contract: this is for people at or past the ordinary age. You cut your hours by 25% to 50% and need 33 years of contributions (25 if you have a disability of 33% or more).
• With a relief contract (contrato de relevo): you can start about 2 to 3 years before the ordinary age. You need 33 years of contributions and 2 years' seniority in your company. You cut your hours by 25% to 50%, or up to 75% in some cases. Another worker must take over the hours you give up.

Your contributions stay at 100% while you are partly retired. Ask your employer early, because the relief contract needs their agreement.

Working while drawing a pension

You can work and draw a pension, but only if you started the pension at or after the ordinary age. This is not open to early-retirement pensioners.

• Flexible retirement: you work part-time and draw a share of your pension, reduced in proportion to your hours.
• Active retirement (jubilación activa): you work full-time and receive 50% of your pension. You must have reached the ordinary age and have a 100% base pension.

You and your employer pay an 8% solidarity contribution. Self-employed people who employ at least one worker can reach 100% of the pension.

Where to go next

The checklist, timeline and documents below walk you through the steps. For your own numbers, use the Social Security simulator or ask the INSS.

Choosing between options

How do you want to take the bonus for retiring after the ordinary age?

• A higher pension for life: Choose this if you want a larger monthly pension for the rest of your life: 4% more for each full year you delayed.

• A lump sum: Choose this if you prefer a one-off payment now, based on the years you delayed and your pension amount.

• A mix of both: Choose this if you want some extra cash now and a smaller increase in your monthly pension.

You can choose only if you retire after the ordinary age with at least 15 years of contributions. The bonus is counted for each full year of delay.

Timeline and deadlines

• Check you meet the voluntary early retirement conditions: 35 years of contributions and a pension above the minimum: before you decide to stop work

• Voluntary early retirement can start: up to about 2 years before the ordinary retirement age

• Register as a jobseeker if you were dismissed for objective reasons: at least 6 months before you claim involuntary early retirement

• Involuntary early retirement can start, with at least 33 years of contributions: up to 4 years before the ordinary retirement age

Documents you need

• Your relief contract (contrato de relevo): the employment contract of the worker who replaces your reduced hours, needed if you retire partially before the ordinary age.

• Proof of 2 years' seniority in your company, needed for partial retirement with a relief contract.

Checklist

• Count your years of contributions: voluntary early retirement needs at least 35 years, involuntary needs at least 33.

• Run the Social Security simulator to see how much your pension is reduced for each month you retire early.

• Confirm you were dismissed for objective reasons, such as a collective dismissal, if you plan involuntary early retirement.

• Confirm you have at least 15 years of contributions if you plan to delay retirement for a bonus.

• Ask your employer about a relief contract if you want partial retirement before the ordinary age.

• Check that you are an employee, since partial retirement is not open to the self-employed.

• Confirm you have reached the ordinary retirement age before planning to work while drawing a pension.

Frequently asked questions

Can I take early retirement if I resign from my job?

Yes, you can retire early voluntarily up to about two years before the ordinary retirement age, but only with at least 35 years of contributions. Your pension must also be higher than the minimum pension that would apply at 65. Early retirement after dismissal is a separate route and does not cover resignation.

What bonus do I get for working past the ordinary retirement age?

You get a choice for each full year of delay: a 4% pension increase for life, a lump sum, or a mix of both. You need at least 15 years of contributions to qualify.

Can self-employed people use partial retirement?

No, partial retirement is for employees, not the self-employed. It combines a part-time job with a partial pension, and your hours must drop by 25% to 50%. Up to 75% is possible with a relief contract for a full-time indefinite replacement.

Can I work full-time and still draw a pension?

Yes, active retirement lets you work full-time and receive 50% of your pension, if you have reached the ordinary retirement age and have a 100% base pension. It does not apply if you took early retirement. Employer and employee pay an 8% solidarity contribution, and self-employed people who employ at least one worker can receive 100% of the pension.