On 16 May Spain’s government approved a decree making retirement options more flexible in a bid to encourage employees to voluntarily postpone their retirement dates beyond the legal retirement age. Those who decide to continue working beyond the legal retirement age will benefit from both a bonus at the time of their departure and a 2% increase in their pension benefits per year postponed.
The Ministry of Inclusion, Social Security and Migration has introduced a new formula that combines benefits that have already been separately implemented and it notably allows employees to take up two previously entirely separate procedures. ‘Late’ retirees will be able to receive both a departure bonus when they retire and a 2% increase in their pension for each year they postpone beyond the legal retirement age.
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Article authors
Cécile Thibaud
Correspondent in Spain
As Madrid correspondent for mind RH since 2021, I cover news developments in Spain's world of work, focusing on legal developments and collective bargaining, particularly around work-life balance, equality and inclusion policies, which have been hot topics in the country in recent years.