In 2026, Spain will continue its gradual increase of the retirement age, targeting a standard retirement age of 67 for those who have not accrued a sufficient work history.

The transition, initiated in 2013, is designed to address the aging population and ensure the sustainability of the public pension system.

As of January 1, 2026, the ordinary retirement age will vary depending on the length of time individuals have contributed to Spain's Social Security system.

Two scenarios will allow individuals to retire without penalties: those who have contributed for at least 38 years and 3 months can retire at 65, receiving 100% of their pension.

For those who fail to meet this threshold, the full pension will only be accessible at 66 years and 10 months.

The system has been progressively implementing these changes over the past decade, culminating in the legal retirement age of 67 years set for 2027 for anyone who has not met the minimum contribution period.

Importantly, a unique exception allows individuals to retire at 63 with full pension benefits, provided they have contributed for at least 38 years and 3 months, and are registered with Social Security or in a related status at the time of retirement application.

This is the only legal avenue to retire two years earlier without pension penalties in 2026.

Additionally, the Spanish retirement system includes various forms of early retirement; however, these typically involve reductions in pension amounts.

Individuals wishing to retire before reaching the legal retirement age, without the required contributions, may retire starting at 64 years and 10 months, albeit with financial penalties applied to their pensions.

Moreover, early retirement may be available due to involuntary reasons, such as layoffs or corporate restructuring.

In such cases, if a worker has contributed over 38 years and 3 months, they can retire starting at 61. If the contribution requirement is not met, the eligibility age extends to 62 years and 10 months.

All types of early retirement involve reduction coefficients that decrease the pension amount based on the months of retirement prior to the legal age, potentially resulting in significant financial impacts over time.

Conversely, individuals choosing to continue working beyond the legal retirement age may benefit from various economic incentives.

Specifically, for every complete year worked past the ordinary retirement age, the pension increases by an additional 4%.

Additionally, there are semi-accumulative bonuses and the option to receive a one-time compensatory payment instead of the percentage increment.

These measures aim to encourage prolonged participation in the workforce, contributing to the pension system's sustainability while also rewarding extended professional activity.