The uncertainties that lurk the public pension system force us to calculate how much we will charge once retired long before reaching that moment. Taking accounts today will help us see how our income will decrease and, above all, to plan how to save to try to maintain our current standard of living.
The calculation depends only on two factors: the years quoted and the regulatory base.
Contribution period to calculate the pension in 2020
Let’s start with the first: the time that has been quoted. The legislation establishes a minimum contribution period to qualify for a public pension, a period that the regulations approved in 2013 are progressively increasing at the rate of one quarter per year.
So, For those who retire this year, it has been established in 37 years, but the threshold will be increased to 2027 in the 38 years and six months. Therefore, this year may retire at age 65 who already have 37 contribution. If you have not quoted so much you will have to wait to be 65 years and ten months to request the withdrawal.
Regulatory basis for calculating the pension in 2020
The second factor, the regulatory base, refers to the amount that during our active life we have contributed to the Social Security. That is, that withholding of the gross salary that our company has paid on our behalf every month.
In reality, the entire working life of the pensioner is not taken into account; Only the last years. The old regime only had what was contributed during the fifteen years prior to retirement. This favored, for example, that many freelancers, who can choose how much they pay each month to Social Security, will contribute as little as possible up to 50 years of age to, from that moment, increase payments and thus improve the contribution base on He would calculate his pension at 65.
The change in regulation of 2013 also altered this calculation factor and is progressively raising it (twelve months each year) with the objective of accounting for the contribution of the last 25 years of work as of 2022. For this year, the last 23 years of professional activity are computable. That is, the 276 months prior to retirement.
Once the computable months have been established, The regulatory base will be determined by adding the last 276 contribution bases (gross monthly compensation, including extra prorated payments) and dividing the result by 322. This divisor is not arbitrary; it is the sum of the 276 ordinary payments received for 25 years plus the extraordinary 46 received during the same period.
Given how overwhelming this computation can be, especially if at some point the company has changed or even the regime, Social Security itself offers a tool on our website to make our forecast.