Retirement age in Spain is increasing: This will be the new Spanish retirement age in 2024
Find out when you can retire in Spain with a full pension
It seems, perversely, that with each passing year, retirement seems further and further away. For anyone who has worked in Spain and paid into their ‘Seguridad Social’ Social Security public pension pot, the retirement age will be increased over the next four-year period.
The Spanish government has decreed that, starting from 2024, the retirement age will increase progressively until 2027.
Also of interest: The best way to handle your pension when moving abroad
What is the retirement age in Spain as of 2024?
From January 1, 2024, people who work in Spain and who have paid Social Security contributions for more than 37 years and 9 months will be able to retire when they reach the age of 66 years and 6 months.
In other words, in comparison with the retirement age in 2023, an additional two months will be added to the minimum age next year.
Those over the age of 65 who have paid Social Security for more than 38 years will be able to access ordinary retirement with 100% of their pension.
The alternative is voluntary early retirement. This can be requested up to two years before the legal retirement age, so when you are 64 years and 6 months old. Although this option has its drawbacks, the most obvious is that you will not receive the full amount of your pension, but rather a fraction of it depending on how early you take retirement and the length of time you have contributed to the Social Security.
In 2025, 2026 and 2027, the retirement age will continue to go up until it reaches the age of 67 by 2027.
For those who have a UK state pension but have gaps missing in their National Insurance contributions, perhaps because they are living abroad, the British government has decreed an extension for them to be able to pay to plug those holes and receive a full UK pension.
For pension advice, investment advice and retirement planning, contact the experts at Blacktower Financial Management today:
Address
120 Avenida Dr. Artero Guirao 2C. San Pedro Del Pinatar, 30740, Murcia, Spain.Tel: +34 657 684 094
Financial Advice Issues for Expats in Spain
I have been a Qualified Financial Adviser for almost 35 years now. 25 years in the UK for major institutions such as Natwest, RBS and Royal London. I have been in Spain giving expats financial advice now for 10 years and it is quite remarkable the different approaches as well as advice that is required for an expat now living in Spain. Blacktower is a company that has specialised in providing the best solutions for its clients living outside the UK for 30 years also.
The currency issue is always high on the agenda and a discussion for the long term future has to be taken onto account. Questions like What will happen if one partner dies? Will the other remain in Spain? What about other family members? What Inheritance tax provisions do you have in place? The list goes on and on.
Existing portfolio’s and investments that were the mainstay of portfolios in the UK may now be obsolete. An example of this is quite often tax efficient products in the UK like ISA’s and previously held TESSA’s PEP’s actually have low growth rates and provide no tax advantage to a Spanish fiscal resident.
Existing Pension holdings either paid by the state or private pensions built up through working lifetimes are topics that have to be covered. Many expats have lots of small pensions from many ex employers and can be confused by the communications and administration in dealing with them. At Blacktower we specialise in advising on how to consolidate and bring all these pensions together in one place.
Bank accounts and investments in Spain always bring up lots of questions too. Quite often the small print associated with financial products in Spain is in Spanish this can make it very difficult even if you have a good grasp of the language. Understanding Jargon in English is sometime difficult enough. I provide clear easy to understand letters and documents in English so that you fully understand any terms and conditions before making a decision.
Advice on tax efficiency is just as important and offering good returns. There are products available exclusively for Spanish expats that can provide invaluable benefits. Having a good base knowledge of the tax implications both now and in the future is an essential ingredient to making a sound decision.
I will complete a thorough factfind, ask you the right questions, establish your individual needs, attitude to risk and capacity for loss and desired returns before providing you with a full written report of advice and my recommendations in plain English. You will then have time to read and consider all the information before contacting me with how you wish to proceed.
Click for more information about Keith Littlewood.
The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both the DGS and CNMV in Spain
