Workers born between 1960 and 1970 are at a crucial point in determining what their retirement will look like in the coming years. The reference retirement age is expected to be 67 once the system is fully implemented, but the big question remains: who can receive the full 100% pension and under what conditions?
The most important factor is not just age but the total number of years worked and contributed. Generally, those who have contributed at least 38 years and 6 months can access the full pension without waiting until age 67, as long as they meet the established requirements. For those who fall short of this minimum, it will usually be necessary to wait until the standard retirement age, since retiring early means losing part of the income.
The calculation method also matters. Currently, the pension is based on the last 25 years of contributions, but there is also an option that expands the calculation to 29 years while eliminating the two worst years, which in some cases can improve the final amount.
However, receiving 100% of the regulatory base does not always mean getting the highest possible pension, as there are annual limits and other factors that influence the result, such as the Intergenerational Equity Mechanism (MEI), which aims to maintain the system’s balance.
Regarding early retirement, the pension is permanently reduced through coefficients based on how much earlier retirement occurs. The earlier you stop working, the larger the reduction typically is.
The system also offers more flexible retirement options. For instance, partial retirement allows combining work with a pension, active retirement lets you keep working while receiving part of the benefit, and deferred retirement rewards those who postpone retirement with pension improvements.
