Surprising change in the BOE: flexible retirement affects pensioners

The BOE has set a deadline for a change that could change the lives of thousands of pensioners. The new rule will not be applied immediately, but will allow a period of three months before taking effect.

Royal Decree 416/2026, published on May 27, regulates flexible retirement and how to combine pension with a job. In the Canary Islands, where almost 215,000 people receive a retirement pension, the measure will begin to apply at the end of August.

How flexible retirement works

Compatibility between work and pension

The main novelty is that those who are already retired will be able to work part-time and receive part of their pension at the same time. The workday must be between 33% and 80% of a comparable full-time day.

The pension is not collected in full but is proportionally reduced according to the hours worked. Therefore, it is not possible to cheat by collecting the full amount while working half-heartedly.

Extension to self-employment

Another relevant change is that this flexibility will also apply to people who work on their own account. But only if they have not been self-employed in the three years prior to retirement.

In this case, the compatible pension will be 25% of the total, and no more.

Incentives and mandatory communication

Increases based on the workday

If a retiree starts part-time salaried work six months after retirement, they may receive an increase in the compatible pension.

• Between 55% and 80% of the workday, the increase is 25%.
• Between 33% and less than 55%, the increase is 15%.

Obligation to notify Social Security

The retired person must notify Social Security in advance of any start, modification, or cessation of compatible work activity.

If they do not, they could have to return part of the unduly collected pension and face penalties.

Entry into force and objective of the reform

When it starts to apply

Although the royal decree is now official, the new regulation will be activated three months after its publication, that is, at the end of August 2026.

Pensions started before will be governed by the previous regulation.

What the government intends with this

The measure aims to boost flexible retirement, which until now was hardly implemented.

The goal is for retirees to reintegrate or maintain work activity without completely losing their pension.

Furthermore, it repeals an old 2002 rule to update the legislation to the most recent pension system reforms.

The flexibility that promised to be a refuge ends up being a complicated game of numbers and notifications.