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Are you already dreaming of the day you can relegate the suit to the back of the wardrobe in favour of flip-flops, and finally trade the office for the beach? If retirement is somewhere on your horizon, there are some important changes coming in Spain in 2027.

 

The country is reaching the end of a gradual increase in the state retirement age that began back in 2013. From next year, the standard retirement age will be 67 for people who haven’t built up 38 years and 6 months of social security contributions.

 

However, there’s an important exception. If you’ve paid into the Spanish system for at least 38 years and 6 months, you’ll still be able to retire at 65.

 

So, if you’re wondering whether the new 67-year retirement age automatically applies to you, the answer is no. It all comes down to your contribution record.

 

The change also affects people who are considering retiring early. From 2027, voluntary early retirement will normally be possible up to two years before your standard retirement age. That means you’ll generally need to be 65 if you have less than 38 years and 6 months of contributions, while those who have reached that contribution threshold can retire early from 63.

 

There are different rules for involuntary early retirement, such as when someone loses their job in circumstances that allow them to qualify. From 2027, the minimum age will be 63 for people with less than 38 years and 6 months of contributions and 61 for those who have reached that threshold.

 

Partial retirement rules are also changing. From next year, people with fewer than 38 years and 6 months of contributions can access it from 64, while those with a longer contribution record can do so from 62, subject to the other requirements of the scheme.

 

Another change that could affect future pension payments is the amount of time used to calculate the pension.

 

The system is gradually moving towards a choice between two calculation methods. By 2037, people will be able to choose between using their last 29 years of contributions, with the 24 worst months left out, or sticking with the existing calculation based on the last 25 years.

 

The change is being introduced gradually. In 2027, pensions will be calculated either under the existing 25-year system or using 308 months of contributions, around 25 years and 8 months, with the four worst months excluded.

 

There’s also a small change coming to the amount workers and employers contribute towards the pension system.

 

The Intergenerational Equity Mechanism, known as the MEI, will increase to 1% in 2027. Employers will pay 0.83% and employees 0.17%. The additional contribution is designed to help Spain cover the rising cost of pensions as the large baby boomer generation reaches retirement.

 

If you’re planning your retirement in Spain, particularly if you’ve worked in more than one country, it’s worth checking your individual contribution record rather than assuming the new 67-year rule automatically applies to you.

 

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