Can I cash in my pension if I no longer work for the company?

If I retire, I can continue working in the same company in Bolivia.

The international mobility of workers is increasing.    Professional opportunities, better working conditions or lack of employment in the place of origin are reasons why many citizens work and contribute abroad.

In this article we explain how contributions made abroad are taken into account when calculating retirement pensions.    For this purpose, three different scenarios are considered, depending on where the contributions were made, and a series of practical examples are given.

How can I contribute to Social Security if I do not have a job?

There is really only one way to contribute without working: the so-called special agreements with the Social Security General Treasury (TGSS). These agreements are voluntary agreements between a worker and the Social Security General Treasury that allow that person to continue contributing.

How much do they take from your pension if you work?

There is no limit on the salary to be received in the new job, nor will the pension be reduced because of it, unless you were receiving 75% of the base salary, in which case you will receive 55% of the base salary for as long as you are working.

What happens to my pension if I stop working?

For stopping working and the number of years without contributing, causing the preservation of this right or others to be lost. The spouse cannot collect the pension of the deceased worker (if applicable), because he/she stopped working for many years and lost the conservation of the rights.

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What to do after retirement

WARNING: This information is merely indicative. If you wish to find out whether in your particular case you can combine a job with a disability or pension, go to your National Social Security Institute office or call its service telephone number 901 10 65 65 70.

This is the mildest type of disability recognized by the Social Security (SS). It occurs when the disability we have only produces a reduction in our work performance, but does not in any way prevent us from continuing to perform our work.

The compatibility between employment and total permanent disability is more nuanced. In this case, it is understood that the worker has a disability that prevents him from performing his job, so in this case employment is incompatible with a position in the same professional category or group. However, it would be possible to work in the same company as long as the usual functions that were being performed are not going to be carried out. In this case, the disabled person would receive a contributory pension equivalent to 55% of his or her regulatory base, which is fully compatible with other employment. The amount of this pension can be increased to 75% of the regulatory base if the Social Security considers that the disabled person may have a qualified disability, i.e., that due to social, labor, training or age circumstances, there is great difficulty in accessing employment. In this case, the qualified status would be lost if the person finds a job and the pensioner would receive 55% of the regulatory base. The performance of any work by the pensioner must be reported to the National Institute of Social Security, except in the case of occupational disease, in which case prior authorization will be required.

What can happen to a pensioner if he/she is caught working?

Retirees who decide to work while collecting their pension without notifying Social Security risk significant fines. In addition, if you are caught working while retired, the least that can happen is that you will be sanctioned between three and six months without collecting your pension.

How much does a special agreement with Social Security cost?

The contribution rate in force in 2021 for the collective bargaining agreement is 28.3%. For example, if you want to have a contribution base for retirement of €1,300, you have to make the following calculations: Contribution base: €1,300 x 28.3% x 0.94 = €345.83 per month.

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How much does it cost to pay the Special Social Security Agreement?

What is the cost of the special agreement with the Social Security? It will depend on the contribution base chosen by the interested party, which can range from the minimum (1,050 euros per month) to the maximum (4,070.10 euros per month).

You can work after retirement

If you live or work abroad, your social security coverage may be provided by your home country or your host country. In either case, you will have to make arrangements to ensure that you remain covered when you move to the other country.

If you are an employee or self-employed professional, you can work temporarily in another EU country as a posted worker, but still be covered by the social security system of your home country.

To access health services in the country where you will be working, you must have a European Health Insurance Card (EHIC). Apply for it from your health insurance organization or the social security system in your country of origin.

If you are self-employed, you must inform the social security agency of your destination country in advance and apply for a PD A1 form from the social security agency in your home country. In order to be granted a PD A1 form, you must demonstrate that the activities you want to perform abroad are similar to those you performed in your home country. To meet this requirement, you must:

When will my orphan’s pension be taken away if I work?

The orphan’s pension is automatically terminated when the orphan reaches the age of 25. However, if at that time the orphan is still a student, the pension may be retained until the first day of the month immediately following the beginning of the next academic year.

What income is compatible with the retirement pension?

At the moment, active retirement only allows 50% of the pension to be compatible with any self-employment or employment. Only the self-employed with at least one dependent worker can combine the income from their activity with 100% of their pension.

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What happens to the worker who retires and continues to work Panama?

Answer 2: The insurance company no longer asks the employee to resign. He continues working and the company does not realize that he has retired because the insurance does not request any documentation from the company, he continues working normally; for example, I have employees who have been retired for six years and are working.

If I receive a disability pension, I can work as a white-collar worker.

Retirement and the pension that comes with it is a goal that workers focus on for much of their working careers. It is usual to speak of this pension in the singular, but the truth is that some citizens may have two different retirement pensions to collect at the same time, once they retire.

The clearest example is that of workers who have worked in a company as employees and also as self-employed throughout their career. These workers who are entitled to the retirement pension generated by an employment relationship (as a salaried employee in a company) and another as a self-employed worker will be able to collect both pensions and will not have to choose between one or the other.

In addition, it is essential to be registered in both regimes that generate a pension or, if you are only in one (this may be the case of a full-time worker), you must be able to prove that you have complied with the minimum contribution period of the regime in question.