The new measures for flexible retirement introduced in May 2026

From 28 August 2026, the regulations governing flexible retirement, deferred retirement and the options for combining work and retirement will change. In this article, we explain what the new rules entail and what the main types of retirement are in Spain

What is flexible retirement?

Many people retire upon reaching retirement age and, after a while, want to return to work. One way to do this is through flexible retirement, which allows you to receive your pension whilst working part-time. Furthermore, you can increase your pension when you retire permanently.

Flexible retirement, therefore, is a scheme that allows you to work part-time and receive a pension at the same time, whilst continuing to make Social Security contributions. This enables many people to improve their personal finances and their future pension.

Changes regarding flexible retirement

The new regulations, which come into force on 28 August 2026, introduce several important changes, which are as follows:

Compatibility with self-employment

The new provision included in the regulations is that the option to combine work with a pension now also applies to the self-employed; in other words, it is possible to receive a retirement pension whilst working on a self-employed basis. To this end, workers are permitted to receive 25 per cent of their pension whilst carrying out this activity.

Increase in working hours

Another new provision is that when combining a pension with employment, the working hours may range from 33 per cent to 80 per cent of those of a full-time worker.

Removal of the minimum retirement period

Under the previous regulations, it was necessary to have completed a minimum retirement period in order to apply for flexible retirement and continue working. Once the amendment comes into force, an application can be made at any time, provided that the retirement pension has been granted.

Increased incentives

If you apply for flexible retirement six months after retiring, you will receive a higher percentage of your pension. Part-time working hours of between 55% and 80% will increase your pension by an additional 25%, whilst those of 33% or more but less than 55% will increase it by an additional 15%.

Pensioner status

For the duration of flexible retirement, the worker will have pensioner status for the purposes of healthcare and social protection.

Changes to deferred retirement

Deferred retirement involves voluntarily postponing the cessation of work and the application for a retirement pension beyond the statutory retirement age. To encourage this, the Social Security system offers improvements to the future pension benefit.

It is used in cases where the worker wishes to increase their retirement pension because they have contributed for a short period during their working life or have had low contribution bases.

The requirements for eligibility are:

• To have reached the statutory retirement age in force at the relevant time.
• To have made Social Security contributions for at least 15 years.

The newly approved amendment modifies the deferral supplement and stipulates that if it is received as an additional percentage, it is suspended for the duration of flexible retirement; however, if a lump-sum payment or a mixed option was chosen, flexible retirement is not available.

What other types of retirement are there in Spain?

Alongside the types of retirement we have looked at, there are others, among which we highlight the following:

• Standard retirement. This occurs when a person retires at the statutory retirement age, which is 67 years or 65 years if they can prove 38 years and 6 months of contributions.
• Voluntary early retirement. Workers covered by any Social Security scheme who meet the following requirements may be eligible for this option:
  o Be two years younger than the retirement age.
  o Be registered with Social Security or in a status equivalent to registration.
  o Have a minimum contribution period of 35 years.
• Partial retirement. This occurs when it begins after reaching the age of 60 and is combined with a part-time contract, whether or not linked to a relief contract for an unemployed person or to a fixed-term contract agreed with the company. The requirements vary depending on whether or not there is a relief contract.
  Without a relief contract.
  o Normal retirement age
  o Full-time or part-time employment
  o The reduction in working hours must be between a minimum of 25% and a maximum of 75%.
  o The minimum contribution period is 15 years.
  o No minimum length of service with the company is required.
  With a relief contract. If a relief contract is entered into, full-time workers may be eligible for partial retirement if they meet the following requirements:
  o They must be employed on a full-time basis.
  o A permanent, full-time replacement contract must be drawn up at the same time.
  o The minimum age must be no more than 3 years below the retirement age.
  o The reduction in working hours must be between 25% and 75%.
  o The minimum contribution period must be 33 years, 30 years or 25 years, depending on the specific case.
  o The employee must have been with the company for 6 years immediately prior to partial retirement.

Ultimately, the aim of all these measures is to encourage people to remain in the labour market and continue making contributions, in contrast to the situation some time ago when early retirement was encouraged.

If you find yourself in any of the situations we have discussed and wish to retire but have any doubts, please contact our team of expert employment lawyers so that they can analyse your case, assess your circumstances and determine what retirement options are available to you.