A self-employed worker has to add 35 years of contributions to Social Security to be able to collect the maximum retirement pension, although that amount can be adjusted if they have less experience.
Self-employed workers can collect the retirement pension if they have contributed to Social Security for 35 years, of which at least two have to be between the last 15 years.
In the event that there are any doubts over time contributing to the INSS, it is advisable to request the Work Life Report. It takes little time and all the information regarding employment contracts or periods of inactivity will appear.
The retirement pension of a self-employed worker is less than that received by a person who has had a valid employment contract as an employee. And, as this changes, so does the way of calculating the amount to be charged, although it is still in the contribution base.
This is due to the fact that self-employed workers invest less money in paying the Social Security contribution, so that subsequently the amount to be received will be lower than that received by an employed person upon reaching retirement age.
How many years does a self-employed person have to contribute to retire?
In total, 15 years. Of which two have to be within 15 days prior to requesting the retirement pension. The age at which a self-employed person can retire, therefore, is 65 years and 11 months, although it will increase to 67 in 2027, as set by the pension reform.
Early retirement for the self-employed
Self-employed workers can request voluntary early retirement upon reaching the age of 63, although they maintain a minimum of 35 years of registration with Social Security. In this case, going to the offices by appointment is the best way to know how to apply for early retirement.
In this same application document it also appears if the claimant meets the requirement of having 35 years of contributions.
How much does a freelancer charge for retirement?
A worker under the Special Scheme for Self-Employed Workers, RETA, of the Social Security charges a maximum of 780 euros per month. The self-employed pay the administration 30% of the contribution base.
The retirement pension for the self-employed is 40% less than that received by the person who has had a valid employment contract. Why this difference? Experts, including the president of ATA, Lorenzo Amor, point out that 85.5% of the self-employed are quoting according to the minimum base.
This is a problem when requesting the minimum pension, since many of them are left with a rather small amount.
The Covid19 crisis does a lot of damage to these entrepreneurs who have had to close their businesses for not being able to cope with expenses, even going so far as to lay off their employees.
What is the minimum contribution base for freelancers?
The minimum contribution base for self-employed workers is 944 euros per month, and the maximum is 4,070 euros. The self-employed can change it whenever they want as long as it is before the age of 47.
What they decide at that time, will mean receiving more or less in the retirement pension.To be up to date on everything related to pensions and the application of any reducing coefficient for self-employed workers, it is necessary to remain attentive to the updates of the latest news on self-employed workers.
