Early retirement: the key calculation to subtract 2 or 4 years

To know if a person can retire early, they must first calculate their standard retirement age. Only then can they check if they have the right to bring it forward by two or four years, depending on the mode they wish to apply for. The figure of 65 years alone is not a valid universal starting point.

A person may have heard that early retirement means subtracting two or four years from a fixed age. The reality is more precise: Social Security starts from the years contributed and other periods that the regulations may consider. This is where an apparently simple calculation can lead to error.

Why is the standard age the first step?

Which contributions are taken into account?

This calculation directly affects any worker who wants to know when they can retire. Social Security considers the contributions actually made, that is, the periods worked and contributed by the person concerned.

But the count is not necessarily limited to accredited working days. It can also include periods that the General Social Security Law considers computable in certain cases, such as bonuses for children or other assimilated periods.

Therefore, the figure to review is the total contributions that can be taken into account when the standard retirement arrives. It is not enough to look at an old payroll or make a quick subtraction from the age of 65.

• Contributions actually made during working life.
• Bonuses for children when the provided conditions are met.
• Other assimilated periods that the regulations allow to be added.
• Shadow contributions to set the reference standard age.

What are shadow contributions?

Shadow contributions are a fictitious projection of the period between the qualifying event and the legal standard retirement age. They serve to set the reference age from which the possible advance is calculated.

This element can be decisive because early retirement is not determined only by the contributions already accumulated. The calculation incorporates this projection to establish what the person’s standard age would have been.

In other words, the standard age is determined first and then the corresponding advance limit is applied. The order of steps matters.

How many years can be brought forward?

When can early Voluntary retirement be requested?

Voluntary early retirement occurs when the worker themselves decides to stop working. This mode allows advancing retirement by a maximum of two years from the standard age that corresponds to them.

To access it, a minimum of 35 years contributed must be accredited. Also, the exact moment of retirement varies depending on whether the person reaches the threshold of 38 years and 6 months contributed or not.

With 38 years and 6 months contributed or more, the standard retirement age is set at 65 years and voluntary early retirement can reach 63. If this period is not reached, the standard retirement age is set at 67 years and the maximum advance allows up to 65.

The figure of 63 years, therefore, does not apply to everyone. It depends on the combination between the calculated standard age and the contributed period. This is the point that is often hidden when only talking about subtracting two years.

What changes when retirement is Involuntary?

Involuntary early retirement occurs when leaving work is due to causes beyond the worker’s will, such as dismissal. In this mode, the maximum advance reaches four years from the standard age.

The minimum required period is 33 years contributed. As in the voluntary mode, the final figure depends on whether the person has accumulated at least 38 years and 6 months or is below this threshold.

Thus, a person who meets the contribution threshold can reach 61 years in the involuntary mode. If they do not reach it, the indicated age becomes 63 years, always with a minimum of 33 years contributed.

It is not a matter of freely choosing between 61, 63, or 65 years. Each age is derived from a prior calculation and the cause that gives rise to early retirement.

How to Review the calculation before applying?

What steps must the worker follow?

This check is especially useful for those already considering early retirement and wanting to avoid a decision based on an incorrect reference age. The procedure can be ordered into four clear steps.

1. Gather information about all contributions accumulated throughout working life.
2. Add, if applicable, bonuses for children and assimilated periods that the regulations allow to be considered.
3. Incorporate shadow contributions to determine the reference standard age.
4. Check if retirement will be voluntary or involuntary and apply the maximum advance of 2 years or 4 years.

The result allows knowing if the standard age is 65 or 67 years depending on the indicated contribution period. Then the corresponding early age can be calculated, provided the minimum contribution for each mode is met.

Which errors should be avoided?

The main error is taking 65 years as a standard age applicable to everyone. This reference only fits those who reach 38 years and 6 months contributed or more, according to the source data.

Another error is counting only the worked periods without reviewing shadow contributions or assimilated periods. This omission can modify the standard age used to calculate the advance.

• Do not subtract two or four years from 65 without first calculating the standard age.
• Do not confuse voluntary retirement with involuntary.
• Do not forget the minimum of 35 years contributed for the voluntary mode.
• Do not ignore the minimum of 33 years contributed for the involuntary mode.
• Do not assume that 61, 63, or 65 years serve for any situation.

The documentation and information to review include:

• The worker’s contribution history.
• Periods effectively contributed.
• Information on bonuses for children, if applicable.
• Assimilated periods that may be computed.
• Data necessary to calculate shadow contributions.

The source does not set any specific deadline to submit the application nor detail specific administrative documentation beyond the elements involved in the calculation. Therefore, anyone interested must verify their case before making a final decision.

The practical rule is clear: first, determine the standard age and then subtract the advance allowed by the corresponding mode. **An erroneous calculation can lead to applying for retirement too early or believing an age is possible when it is not.** Reviewing the years contributed, the computable periods, and the reason for leaving work is the step that makes the difference.