Economics

Early retirement definition/Causes/Examples

The early retirement is the possibility for a person to get the benefit of a public pension or the state getting a pension before time and age that corresponds. Early retirement definition

The law establishes the age of 65 to grant retirement, in many cases workers have access through the public social security system to achieve it before that age.

There are two specific cases of early retirement that refer to:

  • Voluntary retirement: it is for a voluntary term, it is below the age established by law, a worker can request it by fulfilling all the regulatory requirements.
  • Involuntary retirement: is when the termination or revocation is not voluntary, but is motivated by unemployment or for forced reasons and is below the legally determined age. Early retirement definition

Causes of early retirement

There are different types of pensions that are granted before the corresponding time.

Early retirement due to illness or disability

It is generally authorized and certified by the social security agency of each country as long as it meets all the requirements for approval.

The diseases recognized to approve a disability retirement are: Down syndrome, intellectual disability, osteogenesis imperfecta, cystic fibrosis, mental and neurological diseases, cerebral palsy, among others. Early retirement definition

Social security agencies agree on two kinds of early retirement for workers with disabilities:

  • When the disability is 45% or higher.
  • When it is 65% or higher.

In addition, they require a total of contributions equivalent to an ordinary retirement.

Early retirement for public officials

They have the possibility of retiring once they have accumulated 30 years of work for the State, with an age of 61 years, the mandatory age being 65 and 67 years.

However, civil servants who have 15 years of contributions can access the retirement pension and the regulatory percentage table that corresponds to them will be applied either by established age or by illness. Early retirement definition

Examples of early retirement

  • Without a country establishing the legal age of 65 to grant retirement, there is the possibility of opting for an early retirement before reaching the agreed age.
  • The State, through the public body in charge of social security, has a system so that people know the calculation of the pension.
  • Workers can process their retirement before reaching the legally established age agreed through the public pension system of their country. Early retirement definition

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