Spain's pension reform blocked, early retirement without penalty rejected

Spain's Congress voted down a Podemos amendment that would have allowed people with 40 or more years of contributions to retire early without any reduction in pension amount. The PSOE and PP voted against the proposal, Vox abstained, while Sumar, Junts, UPN and Coalición Canaria supported it. The government had estimated the reform would cost €3.358 billion, including €1.345 billion from eliminating coefficients for voluntary early retirement and €2.013 billion for involuntary cases. Podemos secretary‑general Ione Belarra condemned the vote as "bipartisanship against retirees."

Social Security official Alfonso Muñoz explained that, despite the legal retirement age rising to 67 in 2027, exceptions remain. Workers who have contributed at least 38 years and three months can retire at 65 with a full pension, and those unemployed since 2013 may also retire at 65 under the previous rules. A new pension‑calculation method introduced in 2026 will automatically compare the traditional 25‑year earnings base with a system that selects the best 302 months from the last 30 years, applying the result that yields the higher benefit.