Ordinary Early Retirement 2024: Ordinary early retirement allows workers who have met specific contribution requirements to access pension benefits before reaching the age necessary for regular retirement.
Currently, ordinary early retirement is intended for workers enrolled in the mandatory public pension system. By December 31, 2026, they must have contributed for 41 years and 10 months (if female) or 42 years and 10 months (if male), provided they started working before 1996. For contributions made from January 1, 1996 onwards, a minimum of 20 years of contributions is required, with a pension equal to 2.8 times the social security allowance.
In this guide, we provide clear and detailed information, including the latest proposals on the 2024 pension reform. We explain what ordinary early retirement entails, who it specifically targets, how it works, how to apply for it, and the difference in benefits compared to regular retirement.
Contents hide
1 What Is Ordinary Early Retirement 2024?
2 News on Ordinary Early Retirement 2024
3 Who Is Eligible for Ordinary Early Retirement 2024?
4 What Are the Requirements?
5 How Does Ordinary Early Retirement Work?
6 How Is Ordinary Early Retirement Calculated?
7 How to Apply for Ordinary Early Retirement 2024?
8 Frequently Asked Questions
8.1 1. What changes are there for pensions in 2024?
8.2 2. What does ordinary early retirement mean?
9 Conclusion
What Is Ordinary Early Retirement 2024?
Ordinary Early Retirement 2024: Requirements, How It Works, How to Apply?
Ordinary early retirement is a pension option that allows individuals to retire from work before reaching the required age for regular old-age pension. To avail of this option, one must have a certain length of contribution history: 41 years and 10 months for women, 42 years and 10 months for men. This option is available to all workers enrolled in mandatory social security who began working and contributing before 1996.
For those who started working from January 1, 1996, a minimum of 20 years of contributions is required. Additionally, the initial pension installment must be at least 2.8 times the monthly amount of the social security allowance, which is currently €754.91 in 2023.
These contribution obligations apply to employees, self-employed individuals, and public sector workers without distinction. They are cumulative until December 31, 2026. However, starting from January 1, 2027, the requirements will increase based on life expectancy.
News on Ordinary Early Retirement 2024
The 2024 Budget Law, currently in the finalization phase, introduces a new pension discipline that brings forward by 3 years, compared to the pensionable age, the minimum contribution requirement for accessing pensions. This change affects workers who have been contributing since 1996. Additionally, the minimum contribution amount will be revised, no longer fixed at 2.8 but adjusted to 3.3 times the minimum social security allowance.
As a result, those eligible for contributory early retirement will be able to access it upon reaching the age of 64, provided they have contributed for at least 23 years by 2024. However, this will only be possible if the pension amount reaches at least 3.3 times the social security allowance. This is equivalent to a minimum of €1,660, instead of €1,409 in 2023.
Once the INPS has clarified the operational specifics regarding early retirement for 2024, we will promptly inform you.
Who Is Eligible for Ordinary Early Retirement 2024?
Who Is Eligible for Ordinary Early Retirement?
Who Is Eligible for Ordinary Early Retirement?
Who is eligible for early retirement? The standard early retirement option is reserved for those who are part of the following social security/assistance programs:
- General Compulsory Insurance (AGO), covering the Employee Pension Fund and offering special benefits for self-employed workers;
- INPS Separate Management;
- Alternative forms of AGO, such as the Flight Fund (for employees of airlines) and the Sports and Entertainment Management (for professional athletes and entertainment industry workers);
- Exclusive forms of AGO, such as the management of public sector employees (including state employees, local government employees, healthcare workers, judicial officers, and kindergarten teachers employed by municipalities and authorized primary schools).
What Are the Requirements?
Those eligible for early retirement are workers who started contributing before 1996 and who meet the contribution requirement of 41 years and 10 months (equivalent to 2,175 weeks) for women or 42 years and 10 months (equivalent to 2,227 weeks) for men. This requirement will remain in effect until December 31, 2026. But what will happen after 2026? Starting from January 1, 2027, contribution requirements will be adjusted every two years based on increases in life expectancy. We will keep you updated on these adjustments. You can refer to the table for the estimated age requirements for early retirement until 2050.
It is important to note that to receive early retirement, it is necessary to terminate employment. However, it is possible to start a new job since Legislative Decree 112/2008 provides for the full accumulation of early retirement and seniority benefits with income from dependent work. If you are self-employed, you are not required to cease activity to receive early retirement.
How Does Ordinary Early Retirement Work?
Early retirement benefits are paid to eligible individuals upon application. However, before submitting the pension application, it is necessary to request INPS to verify the contribution requirements. Once this is done, the Institute will check if you meet the requirements. Only then can you apply for the actual pension. Now let’s see how this verification process works.
How Is Ordinary Early Retirement Calculated?
Keep in mind that the amount of ordinary early retirement and its calculation depend on the contributions made. Similar to other pension plans, ordinary early retirement is determined using two calculation systems: contributory and retributory.
In the contributory system, your entire insurance history is taken into account in calculating the pension benefit. In the salary system, the salary earned before retirement is considered.
When it comes to early retirement, the calculation of the pension benefit is based on a mechanism that converts your contributions into the pension amount:
- If you have contributed for at least 18 years by December 31, 1995, with a retributory system until December 31, 2011, and then switched to a contributory system, this applies to you.
- If you have contributed for less than 18 years by December 31, 1995, had a salary system until December 31, 1995, and then switched to a contributory system (known as a “mixed system”), this applies to you.
- If you have no credits by December 31, 1995, or if you choose to use the fully contributory contribution option (which includes credits with the Separate Management), this applies to you.
How to Apply for Ordinary Early Retirement 2024?
The application for ordinary early retirement can be easily made in several ways. Firstly, you can do it conveniently online on the INPS website. Just visit the site and authenticate yourself via SPID, CIE, or CNS.
Another option is to call the INPS Contact Center. You can dial the number 803 164 from a landline or 06
164 164 from a mobile network. The call is free if made from a landline. You can also choose to contact INPS patronage bodies and intermediaries. They offer telecommunication services to assist you in the application process. It’s up to you whether to apply independently directly to INPS or seek assistance from a patronage/CAF. With their experienced operators, they can guide you through the entire procedure.
Frequently Asked Questions
Here are some important questions and answers regarding ordinary early retirement in 2024!
- What changes are there for pensions in 2024?
The government has recently reaffirmed the Quota 103, with a slight modification for both the public and private sectors. Starting in 2024, the eligibility criteria of being 62 years old and having paid 41 contributions will remain the same. However, there will be a slight difference in the waiting period to receive benefits. Private sector employees will have to wait 7 months, while public sector employees will have to wait 9 months. Don’t worry, these changes are aimed at ensuring a gradual transition and fair treatment for all involved parties. - What does ordinary early retirement mean?
Ordinary early retirement, also known as “quota 41” or “early retirement with reduced requirements,” is different from early retirement for workers. It is specifically designed for individuals who have reached the contribution age of 41, regardless of when they started working. So please do not confuse the two.
Conclusion
In this article, you have learned about Ordinary Early Retirement 2024, and I have explained everything about this pension, such as who is eligible for it, how to apply for Ordinary Early Retirement 2024, and so on. I hope you now know all the things related to this pension.