The number of people taking early retirement has fallen for the first time since 2002. Over the first six months of this year, 40.62 percent of those retiring from work did so between the ages of 60 and 64, compared to 50 percent in 2004. These new figures should please the government, which is intent on preventing early retirement, and as a first step is considering making partial retirement less attractive.

The retirement age in Spain is 65, but in recent years rising numbers of people have taken early retirement. As of 2001, it has been possible to work part time and receive a pension from the age of 60, provided that one has accumulated 30 years of social security contributions. Employers can hire a replacement to cover up to 85 percent of the outgoing employee's work.
As a result, the last three years has seen a sharp increase in retirees, despite the burden on the pension system, with the retirement age falling to 63.4 months from 63.7 months. According to the Labor Ministry, the pension system is at risk of running into deficit from 2015.

In practice, the government argues, many large companies allow workers to accumulate the obligatory 15 percent of part-time employment by working full-time over several months, rather than part time until they are 65. This means that workers have made their social security contribution, and are able to claim a full pension from as early as age 60. At the same time, the new employee is often hired to do a completely different job to the outgoing worker - earning less, thus saving the company money at the cost of the social security system.
So far this year, some 20,000 workers have taken partial retirement. The government estimates the annual figure could rise fourfold by 2010. Each partially retired worker costs the social security system €100,000 extra in pension payments.