Spain has revised its flexible retirement scheme, allowing pensioners to combine work with part of their pension under a new regulation published in the Boletín Oficial del Estado and effective from August 28. The rules replace the previous structure and expand the options and benefits for retirees who want to remain active in the workforce.
Under the updated rules, pensioners can work part-time under a contract ranging from 33% to 80% of a comparable full-time position. Previously, the permitted range was narrower, from 25% to 75%. The change gives companies more flexibility to hire retirees for large roles while excluding minimal, less practical work arrangements.
The reform also covers self-employment. For the first time, certain pensioners can receive part of their pension while working as autónomos. To qualify, they must not have been registered as self-employed in the three years before retirement. Those who meet this requirement will receive 25% of their pension while working independently, a provision absent from the previous law.
New financial incentives apply to people who start part-time work at least six months after beginning to receive their pension. The pension amount is reduced in proportion to working hours, with an additional 15% increase for those working between 33% and 55% of a full-time schedule and a 25% increase for those working between 55% and 80%. The incentives are calculated on the portion of the pension paid during flexible retirement, making the option more financially appealing and addressing previous disincentives.
In general, contributions made during flexible retirement will no longer lead to future pension increases. When part-time work ends, the retiree resumes receiving their full pension, except in specific cases set out by law. The reform also changes incentives for those who voluntarily delay retirement, making calculations more flexible to varied career paths.
The Ministry of Social Security has stressed that participation in flexible retirement remains voluntary. Arrangements established before the new law will continue to be governed by the previous regulations. The government says its goal is to create a more modern and attractive structure that encourages experienced professionals to remain in the labor market if they choose.
Flexible retirement differs from active or partial retirement, which have their own requirements and benefits. The new regulation aims to address the scheme’s previous lack of uptake and better reflect the realities of Spain’s aging workforce. Official data show that Spain has one of the fastest-aging populations in Europe, putting labor market participation among older adults increasingly in focus. The reform is expected to help bridge the transition from full-time employment to complete retirement, giving pensioners more control over their work-life balance and financial planning.
