After the pension reformYou can already get a better retirement for the self-employed, however, being something so disruptive, many people do not know what the pension that corresponds to each person if they are self-employed.
What happens when a self-employed person reaches retirement age?
When a self-employed person reaches retirement age, he regularly receives a pension, however the pension is a little lower than that of people who have been working in a social regime.
This pension is about 465 euros per month. The main reason for this is that the Most of the self-employed are trading below the minimum base to pay the least feasible during the quote throughout your life. This is something simple, the less amount you pay during your contributions, the less amount of money you will receive when collecting the pension.
Is it advisable to quote less?
This is a question that many have people who work as freelancers. It is true that if you contribute as low as you can, throughout your life you will have to pay a very low amount, thus avoiding having to leave almost all your salary in the social security payments. However, it is a double-edged sword, since once you get to the time to collect the pension, you have a low pension that is usually not enough to live on.
The key is to trade high for at least 15 to 25 years before you retire so that when the time comes to collect the pension we can have an adequate amount that allows us to live comfortably.
What is the retirement system like today?
Since January 1, 2013, when the last reform was carried out.
The conditions of this new retirement system for the self-employed focus on the following points.
• The self-employed retirement age must be 65 years and one month. It is believed that by 2017 the age will be 67 years.
• In the event that a self-employed person wants to take early retirement voluntarily, they can request it at 63 years of age, but they must have at least 35 years of contributions.
• To have access to the minimum pension, you must have at least 15 years of contributions
• The amount each self-employed person receives will be based on the years of contributions and the amount of money each paid.
How the pension can be calculated
After the reform, the new system for calculating pensions is based on the general general rules that affect the rest of the employees.
- These are the things that should be considered to carry it out
- You can select a full career with social security. It is accessed when 38 years and six months have been paid to social security.
- You must know the minimum period for the quote
- The minimum number of years to contribute is 15 years and you can have access to the full pension for the self-employed from the age of 35.
What is the amount of the pension?
To understand the total amount of money that we are going to collect, depends on the amount that has been paid month to month for the number of years that has been paid.
The scale taken into account to perform this calculation is up to 50% if only 15 years have been included And till 0% to people who have contributed more than 36 years.
Does the contribution of the self-employed worker increase with age?
Many self-employed, in order to increase their income once they retire increase the amount of pension payments after age 48. This will mean that in just 5 years, the pension to be received can go from € 445.91 to € 501.44.
For get It maximum pension in social securityAfter age 42, each worker must pay the amount of 500 to 600 euros per month and at the same time have contributions for 30 years or more without interruption.
You can have the have a business and collect a pension
Another benefit of the reform is that The social security pension for the self-employed is wonderfully compatible with the opportunity to own a business.
Do a self-calculation of the pension in retirement
To understand which is the the best way to calculate the pensionSocial security has an online system that allows you to know what your approximate pension will be. In this case, what you need is to put in all the information that it asks for, such as the periods of registration with social security and also the contribution bases that you had in previous years.
How to get this information
If you do not have this information, you can request it by phone from social security or even consult it online.
Promote active aging
To help people after their retirement, another measure that has been approved since 2013 is that people who receive a pension can make the pension compatible with an activity in which they charge at least 50% of retirement. For this, the person must register as an active pensioner.
Who governs the amounts and amounts
Social security is responsible for determining each year what are the minimum and maximum limits of said pension. The minimum at the moment is set at 484 euros and the maximum at 3,600 euros; however, each quote is different and there are several restrictions that can make the amount higher or lower.
The first thing we must know is the salary that we have received during the last years of contribution. Since all the full pension will be calculated on that data. During the last 15 years of listed work, an average of wages is taken to come up with an amount. This amount will not include extra payments or any type of payment outside of salary. These figures will be updated based on the CPI.
Every year until 2027, the regulatory base will increase so it must be reviewed annually.
The calculation is this:
The number of contribution bases that the worker had during the last 180 months is divided by 210. This symbolizes the last 15 years of contributions of the last 24 months of the value of his payroll in euros.
Once it gives us a result, we will have to apply several more data that will reduce this amount. As an example, for people who retire before age 65 or for people who have not contributed every year, the guarantee asks for the full amount of the pension.
Assuming that the minimum number of years is 15 years and it is listed at 50%. After 20 years worked it will be 65%, after 25 years worked it will be 80%, after 30 years worked it will be 90% and at 35 onwards it will be 100%.
An example of this is for person who has worked for 30 years (list) with a salary of 1,000 euros, the final amount will be only 900 euros of pension, however, if you only contributed 15 years of your life, the amount is reduced to 500 euros.
You have to keep in mind that each of these amounts are not fixed, so it is very important that you review them every year to understand what are the changes in the contribution base, at the same time as the salary increases in the companies.
All freelancers can select type of contribution base Through which they will contribute, however, they must know them very well, since this is what will make them have benefits or not in case of disability or even make their pension more or less high on the day they have to collect it. The perfect age to increase your pension payment and being able to have a greater amount of benefits is later than 42.
By law, limits are established with respect to the base of the contribution amount of the self-employed and also to all the changes that can be made in it each year.
The only way to anticipate future problems and especially to plan for retirement is to see the amount, very close to the date on which we are going to retire due to the changes that are caused annually. Experts recommend that to have a pattern, the best option is to see it annually to understand if we will need private pensions or not.