Working helps us to develop on a personal level and also brings us an economic benefit, and even so, most of us are already with our eyes set on retirement to finally be able to enjoy free time. However, not everyone faces this situation equally and there are those who have a retirement pension so low that they cannot make ends meet. This makes us doubt whether a retiree can work or whether collecting the pension is incompatible with work.
Can you be retired and work at the same time?
The answer is yes, but with some conditions . In fact, in our system we have several modalities that make it possible to make the collection of a public retirement pension compatible with salaried work.
It implies a reduction in the working day of between 25% and 50% and partial access to retirement . In this way, you collect your salary from the company for the hours you continue to work and also the proportional part of your retirement pension.
In this case we find someone who has fully agreed to retirement but who then has the opportunity to work part time . What is done is proportionally reduce the pension depending on the hours that are being worked. In addition, the new contributions will serve to improve the pension once it is charged in full again.
This modality allows you to work on your own or someone else’s account and at the same time collect 50% of your pension amount . Of course, keep in mind that with active retirement, the contributions you make during this time will no longer be taken into account for the calculation of the total pension once you access it.
Retirement and self-employment
If you are already retired you can carry out an activity on your own if you register as a self-employed person . In this case, you make the payment of the pension compatible with what you earn with your job, but there is a limit, this compatibility is only possible if your annual income is not higher than the annual calculation of the average inter professional salary .
In addition, you can also consider the possibility of retiring and continuing to run your business and earn money with it, but no longer working, but doing only the tasks of the owner of a business.
The compatibility between work and 100% of the pension
It is only possible to work and also collect the full retirement pension in the case of sporadic self-employed jobs and income does not exceed the minimum inter professional salary in annual calculation .
In this case, there is no obligation to contribute to Social Security, but retirees must comply with the tax obligations derived from the activity carried out, for example, paying VAT at the end of the quarter.
What happens if a retiree does jobs that are not compatible?
If there is no compatibility, the collection of the retirement pension is suspended , as well as the right of access to healthcare and pharmaceuticals as a pensioner. For its part, the employer is obliged to register the worker with Social Security and the new contributions will be taken into account when calculating the retirement pension that may correspond in the future.
You have already seen that in most cases a retired person can work and reconcile the collection of the pension with the collection of a salary. But if you do not want to extend your working life, it is best to do adequate financial planning now that you are on time, so that you can retire when you decide and make the collection of your public pension compatible with the savings you have achieved.