Maximum pension and minimum retirement pension in 2018

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The purpose of the Public Pension System is to provide a safe and adequate income when there are causes that require it, such as old age or a disability. Because the system is also used to choose the income differences due to the rights for which it was previously quoted, The Government sees the need to impose limits on pensions, which translates into a minimum pension limit and a maximum pension limit.

Why limits are set, such as the maximum and minimum pension

The Government usually defines these limits in accordance with the Law of General State Budgets. At the same time, it also defines the Minimum Interprofessional Salary and the Public Indicator of Income of Various Effects. In short, it deals with determining the limits of maximum pension and minimum pension of public pensions.

In December 2017 it was published the revaluation of pensions, for 2018 by 0.25%, which is the legal minimum that is defined. We are talking about the fifth year in it, consecutively, pensions are going to rise that 0.25%, that according to the Annual Revaluation Index of pensions, which is stipulated in Law 23/2013, it is the legal minimum established and takes into account the income and expenses of the system, establishing the minimum increase of 0.25%, and a maximum of IPC, at the same time of 0.50%.

The minimum retirement pensions in 2018

Sometimes, the pension to which you are entitled is very low, it is when a minimum is established, a lower limit to try to be sufficient to cover the minimum expenses. The term used for this is a minimal supplement and refers to quotes made in the minimum pension and the denominated amount to which you are entitled. To receive this minimum supplement and enter the minimum pensions it is necessary to reside in national territory.

The person who has the pension, in other words, the pensioner has a minimum and minimum pension establishedIn turn, due to their specific marital situation, and age is also a factor that is taken into account to determine the minimum pension limits, the pensioner's age may or may not be less than 65 years.

The specific marital situation of the pensioner can be categorized into one of these three variants:

• With non-dependent spouse
• With dependent spouse
• No spouse

The dependent spouse refers to whether the person who has a marital bond with the person who is a pensioner is financially dependent on him. This is understood when the person living with the pensioner is not also the holder of a pension Therefore, economic dependence fosters total capital that both can enter, taking into account any other income of any nature, it is less than € 8,321.85 per year.

If that is the case, that the income of both parties is less than that amount, there is a complement equal to the difference, distributed between the respective number of monthly payments. The minimum supplement charge is not possible. exceed the amount of the pension that would correspond when there are two beneficiaries entitled to a pension if there is a dependent spouse.

Calculation of the retirement pension

There are three fundamental factors that determine how much your retirement pension should be:

Total years of listing:

Esto es durante toda la vida laboral, dado que con 15 años de cotizaciones se puede ingresar al 50% de la Base Reguladora (que se explicará a continuación) y va aumentando hasta que be viable ingresar al 100% de la Base Reguladora, al menos 35 años y medio de aportes en 2018 (este factor es variable hasta 2027, posteriormente se requerirá un mínimo de 37 años de aportes para lograr el 100% de la Base Regulatoria.

Expected Years:

It is feasible to anticipate a certain number of years for our retirement, if we fear the opportunity to enter any of the modalities contemplated by the General Law of Social Security for Early Retirement.

Regulatory basis:

This is the arithmetic mean that is updated with the variation of the CPI of the amount made by the Contribution Bases in a specific period of time: In 2018, 21 years before retirement, increasing until in 2022 it will be 25 years.

If some years have been contributed to the system or the contribution history is for very low bases, taking into account more than 15 years to be entitled to a contributory retirement pension, there is a high probability that the quantitative of the pension due to retirement, either in excess, low. And on the other hand, if the contributions have been very high and the retirement pension has been contributing for many years, it will be quite high. So the System tries to guarantee that there is a redistribution of income, so that very high pensions have a limit and very low pensions have a minimum.

Distribution of the retirement pension after 65 years

• With a dependent spouse, it is equivalent to monthly amounts of € 788.90 and annually to € 11,044.60.
• Without a spouse it is equivalent to an amount of 693.30 per month and 8,950.20 per year.
• With a non-dependent spouse, it is 606.70 per month and 8,593.89 per year.

Distribution of the retirement pension before age 65

• With a dependent spouse, it is equivalent to monthly amounts of 739.50 and 10,353.00 per year.
• Without a spouse it is equivalent to an amount of 598.00 per month and 8,372.00 per year.
• With a non-dependent spouse, they are 565.30 per month and 7,914.20 per year.

Distribution of the retirement pension for severe disability

• With a dependent spouse, it is equivalent to monthly amounts of 1,183.40 and 16,667.60 per year.
• Without a spouse equals 959.00 per month and 13,426.00 per year.
• With a non-dependent spouse, it is 910.10 per month and 12,741.40 per year.

Retirement pension for severe disability (permanent disability)

• With a dependent spouse, it is equivalent to 1,183.40 per month and 16,667.60 per year.
• Without a dependent spouse, it is 959.00 per month and 13,426.00 per year.
• With a non-dependent spouse they are 919.10 per month and 12,741.40.

Distribution of retirement pensions for absolute permanent disability

• With a dependent spouse, they are 788.90 per month and 11,044.60 per year.
• Without a spouse, they are 639.39 per month and 8,950.20 per year.
• With a spouse NOT in charge, they are 606.70 per month and 8,493.80 per year.

Distribution of the retirement pension for total permanent disability

• With a dependent spouse, they are 739.50 per month and 10,353.00 per year.
• Without a spouse, it is equivalent to 598.00 per month and 8,372.00 per year.
• With a non-dependent spouse, they are 565.30 per month and 7,914.20 per year.

Distribution of the minimum pension for widowhood

With dependents, it is equivalent to 739.59 per month and 10,353.00 per year.
With 65 years or disability, they are 639.30 per month and 8,950.20 per year.
Between 60 and 64 years are 598.00 per month and 8,372.00 per year.
Those under 60 are 484.20 per month and 6778.80 per year.

Minimum retirement pension in 2017

• At age 65, with a dependent spouse, it was € 786.90 per month. Without a dependent spouse, it was € 637.70 per month. With a non-dependent spouse, it was 605.10 per month.
• Retirement under 65 years old was equivalent, with a dependent spouse, to € 737.60 per month. Without a spouse, it was € 589.36. With a non-dependent spouse, it was € 563.80 per month.
• With 65 years of severe disability, with a dependent spouse, it was 1180.40 per month. Without a spouse it was 956.50 and with a non-dependent spouse it was 907.70 per month.
• On the other hand, the limit of the annual income of the minimum supplement, without including pension, was € 7,116.18 without a spouse and € 8,301.10 with a dependent spouse.

Maximum retirement pension in 2018

In 2018, the maximum amount of pensions is 36,121.82 euros per year. If two pensions are received, the sum of them cannot be higher than the maximum limit.

As there is Early Retirement, at the same time as the Regulatory Base decrease coefficient in advance, The amount resulting from the pension cannot exceed the amount resulting from the reduction of the maximum limit by 0.50% quarterly. Thus, the maximum retirement pension can be entered if production begins at the normal age.

However, the maximum pension limit established can be exceeded when there is a maternity supplement, increasing from 5% to 15% depending on the number of children is 2, 3, 4 or more and prolonging working life beyond legal retirement . age when access to the retirement pension occurs at an age higher than the ordinary age, so an additional percentage will be recognized for each year of contributions in the period between the date of fulfillment of said age and that of the causal event of the pension.