Partial Retirement: Who Qualifies and What You Get
Learn how to reduce your working hours and receive a partial pension while still staying in the workforce.
Partial retirement allows you to reduce your working hours while simultaneously receiving a portion of your pension. It is designed for workers approaching full retirement age who wish to transition gradually out of the workforce.
Who it's for
This scheme is for workers who are nearing retirement age and want to decrease the number of hours they work each week. It is intended for those who wish to stay active in the workforce while beginning to access their retirement benefits.
What you get
When you transition to this scheme, you receive two forms of income: you continue to earn a salary for the hours you do work, and you also receive a percentage of your pension.
What it costs you
To set this up, you must reach an agreement with your employer. This requires coordination between you and the company to manage your reduced schedule.
The catch to know
There are specific requirements regarding how your role is managed during this transition. Specifically, the employer must hire a 'relief worker' (known locally as a contrato de relevo) to fill the gap created by your reduced hours.
How to apply
- Discuss the reduction in hours with your employer.
- Reach a formal agreement with your employer regarding the transition and the hiring of a relief worker.
- Contact the social security office to process your request.