In Spain, the retirement pension means receiving a monthly income, which is usually less than your salary at the time you are active. This means that, at this stage, if you do not enjoy any supplement or income from a pension plan, maintaining the same standard of living becomes complicated with retirement.
For this reason, one of the most expected situations for the recipients of a pension is the collection of extraordinary payments. Thus, questions sometimes arise about whether or not the retirement pension includes extra payments. In this article you can solve all your doubts about the extra pay of retirees.
Do all retirees receive extra pay?
No. Most retirees have extra pay, in fact, they have two, and they start to be paid from the moment they start receiving the pension. Also, its amount is the same as that of an ordinary monthly payment.
The retirement pension is paid monthly in arrears, and the total annual amount is divided into 14 payments, one for each month of the year, and two extraordinary payments, one in June and one in November. They are the so-called extra payments, but when the pension is derived from an occupational accident or illness, the extraordinary payments are distributed among the 12 ordinary monthly payments.
Only those pensions derived from work accidents and professional illness are excluded from this extra pay.
What day will extra Christmas pay be collected?
Thus, the next extra pay will be collected next November, specifically, around the 25th of that month, but this may vary depending on the bank. On this date, pensioners will already have entered this extraordinary payment, for which they will receive twice as much as a regular month.
However, there is the possibility that they will advance your pension, but you must meet a series of requirements that will depend on the type of account and the entity with which you have contracted their services.
Most of the bank accounts created exclusively for receiving the pension, calls payroll account, pension or senior, They provide more facilities to grant an advance of the same. For example, instead of at the end of the month, most entities offer you the possibility of having it from the 25th every month.
However, and although this is an advantage, you should consider that these accounts not only offer advantages for being a pensioner, but also require minimum compliance. In some cases, it is required to have a minimum amount of pension, which must be domiciled, and will depend on each entity. In addition, they may require some other condition, such as contracting one of their associated products, such as a credit or debit card.
In any case, you can always negotiate with your entity to enjoy the greatest advantages of being a pensioner, since each branch has its own room for maneuver depending on the holder and the type of account.
Different payment methods
As established by Social Security regulations, all pensioners can choose between the following payment methods:
1. Through financial entities, such as banks, savings banks, rural banks, credit cooperatives and groups or associations of financial entities. The account or book can be:
- Restricted savings book or current account, owned by the recipient and necessarily individual, whose sole purpose is the payment of the pension and its disposal is exclusive to the owner.
- Current account or ordinary savings bookowned by the recipient but, in this case, it may be individual or joint and may include other owners.
two. Through social graduates, which must designate the financial entity from which they wish to receive the funds to satisfy the pensions. However, you must obtain the approval of the financial institution beforehand.
3. through administrators of Social Security nursing homes if their owners occupy a place in them.
How much is the extra pension pay?
The amount of the payments, as we have mentioned, is just double what is usually received in an ordinary month, and Social Security is the body in charge of paying the money. Each pensioner will have a different pension, depending on your age, the number of years you contributed to Social Security and current legislation.
As a general rule, the banks themselves tend to advance the money so as not to keep their clients waiting, and each year it is common for a small rise in pensions to be generated. Likewise, for 2021 they have been increased the monthly payments of contributory pensioners by 0.9%. For the same concept, non-contributory pensioners are receiving 1.8% more this year than they entered in 2020.
If you are about to retire and want to know the amount of your extra payments, you must first know how to calculate the amount of the pension itself. This quantity It will depend directly on the number of years you have contributed to Social Security, and also of the bases for which you have contributed during the last years.
That said, to collect 100% of the pension in 2021 it is essential that the worker retires at the statutory retirement age, that is, 66 years (if you have contributed less than 37 years and 3 months) or 65 years ( if you have contributed for more than 37 years and 3 months). In these last cases you have certain aids to be able to delay retirement.
To finish, you must take into account that the year in which you retire, Social Security will deduct from your extra payments the months that you were not yet retired. But the following year you will be able to collect the extra payments in full.
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