Find out about retirement for the self-employed in 2024

If one of your New Year's resolutions is to start your own business, pay attention to the news in the retirement plan.

News and trends

Currently, many people are considering starting their own projects as self-employed workers to enjoy self-management, flexible, vocational work and greater possibilities for economic growth. However, in contrast to all these positive points, there is a general concern: the retirement of the self-employed. This raises questions such as: are the benefits for self-employed retirees the same as those for salaried retirees? What contribution model do I need to improve my conditions tomorrow if I become self-employed? What is the minimum pension? We will answer all this and much more in the following post. Keep reading and don’t be left with doubts!

Who will be able to retire in 2024?

In this new year that has just begun, these are the two groups of salaried workers who will be able to retire:

  • Ordinary retirement: workers who have contributed less than 38 years to Social Security can retire at 66 years and six months. Those who have contributed for 38 years or more can retire at age 65.
  • Early retirement: workers who have contributed for 38 years or more can retire early at age 63. Those who have contributed for less than 38 years can request early retirement starting at 64 years and six months.

As for the self-employed, these are the groups that will be able to retire this year

In 2024, retirement regulations for the self-employed in Spain have undergone some important changes. Here we present a summary of the news on retirement conditions for this year:

  • Ordinary retirement age: the ordinary retirement age has increased to 66 years and six months for those self-employed workers who have contributed to the Special Regime for Self-Employed Workers (RETA) for less than 38 years. However, self-employed people who have contributed for 38 years or more may retire at age 65.
  • Early retirement: self-employed people who have contributed for 38 years or more may retire early starting at age 63. On the other hand, those who have contributed for less than 38 years may request early retirement starting at 64 years and six months.
  • Delayed retirement: Self-employed people can opt for delayed retirement, which involves working beyond the ordinary retirement age. The surcharges for each year worked after retirement age remain at 4% of the ordinary pension.
  • Active retirement: self-employed people can access active retirement between 66 and 67 years and four months, one year after their retirement age.

It is important to remember that these changes are part of a pension reform that foresees a gradual increase in the ordinary retirement age from 65 to 67 between 2016 and 2027. Therefore, it is essential to stay up to date with the latest regulations to plan appropriately. The retirement.

Know the requirements that a self-employed person must meet to access early, delayed and active retirement

There are some exceptions regarding retirement that you should take into account and that vary depending on the new regulations. Pay attention to the following points!

Early retirement

  • Be at least 63 years old and have contributed for a minimum of 35 years.
  • Demonstrate that, at least, two years of contributions were made during the 15 years prior to the time of requesting early retirement.
  • That the amount of the pension to be received is higher than the amount of the minimum pension that would correspond to the interested party upon reaching 66 years and 4 months of age.

Delayed retirement

  • Have contributed a minimum of 15 years in the RETA or the General Regime.
  • Have reached the minimum ordinary retirement age for the current year.

Active retirement

  • At least one year has passed since the ordinary retirement age.
  • Have contributed enough years to be entitled to receive 100% of the pension.
  • Not having benefited from bonuses or advances at retirement age.

How much will be the minimum and maximum pension for the self-employed in 2024?

In 2024, the minimum pension for the self-employed in Spain will be established at 770,05 € per month, while the maximum pension for those who have contributed to the maximum base will be 3129,40 € per month. In comparison, for salaried workers, the minimum contributory pension for 2024 will be 521,42 € per month, while the maximum pension will be 3175 € per month.

It is important to highlight that, although the figures may seem similar, there are significant differences between the pensions of the self-employed and those of salaried workers, since the self-employed have the option of contributing for a minimum or maximum base, which can result in pensions lower if they have chosen to contribute for the minimum base during their working life. On the other hand, salaried workers contribute based on their salary, which can result in higher pensions if they have had higher salaries during their working life.

One of the advantages of contributing as a self-employed person is that they can change the basis for which they want to contribute up to six times a year, always conditioned by the real income they have in each financial year. Therefore, although the minimum and maximum pension figures may appear similar, the individual circumstances of each worker, whether self-employed or salaried, can result in significant differences in final pensions. Primarily, for this reason, it is essential for every worker to understand these differences and plan accordingly for their retirement.

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