Spain updates retirement rules for self-employed workers

Spain is implementing new regulations regarding retirement and pensions. As of late August, a new flexible retirement modality allows self-employed individuals to continue working while receiving 25% of their pension. To qualify, individuals must not have been registered as self-employed in the two years immediately preceding their retirement.

In Andalusia, despite significant increases in average pensions due to inflation adjustments and higher entry levels for new retirees, a gap remains. The average pension in the region is approximately 1,432 euros, which is 10% lower than the national average. Many retirees in the region still receive amounts below the minimum wage (SMI).

Economists note a paradox where average pensions may exceed the most common worker salaries. This is attributed to high pension replacement rates—averaging 83.5% of the last salary—contrasted with a labor market where many workers earn the minimum wage or work part-time. Additionally, debates continue regarding early retirement penalties, which can reduce pensions by up to 21% depending on the years of contribution and the timing of the withdrawal.