Sure! Here’s the translation to American English:
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Active retirement is becoming an increasingly attractive option for those who wish to remain in the labor market after reaching the standard retirement age. This arrangement allows workers to receive a portion of their pension while continuing their work activities. With regulatory changes set to take effect in April 2025, it is crucial for both workers and companies to be adequately informed about the new requirements and conditions.
One of the most notable aspects of active retirement is that in order to benefit from it, applicants must delay their access to the pension for at least one year after reaching the standard retirement age. For example, a person eligible to retire at 65 must wait until 66 to begin receiving a percentage of their pension. The percentages vary based on the waiting time: 45% if delayed by one year, 55% if two years, 65% if three years, 80% if four years, and 100% if retirement is postponed for five years or more.
Self-employed workers will also be subject to this regulation, maintaining the same conditions. However, if a self-employed individual has at least one indefinite contract employee who has worked for 18 months or hires a new worker who has not been associated with their activity in the last two years, they may increase the percentage of the compatible pension up to 75% by postponing their retirement for one to three years.
To access active retirement, individuals must have delayed their access to the standard pension for a minimum of one year and have at least 15 years of contributions, of which at least two must be within the last 15 years. Additionally, it is required to start or maintain a work activity after receiving the pension and not to have previously enjoyed partial or flexible retirement.
Starting in April 2025, exceptions that allowed some self-employed individuals to receive 100% of their pension without meeting the established requirements will be eliminated. This change will require all applicants to postpone their retirement by at least one year.
From Valoira Abogados, a law firm with over three decades of experience in Labor Law, it is advised that interested parties carefully consider this option. Experts point out that “active retirement is an interesting path for those who wish to remain active in the labor field, but it is necessary to meet specific and well-documented conditions. It is not automatically granted, so proper planning is essential.”
Valoira Abogados, with offices in Barcelona, Madrid, and Palma de Mallorca, is recognized in the field of labor legal advice, offering a specialized approach and close attention to ensure regulatory compliance and effective resolution of any labor conflicts.
Source: MiMub in Spanish
