The Andorran pension system

The necessary requirements.

 

1. The retirement age is 65 years.

2. The monthly amount of contributions to the Pension Fund is at least 180 €.

 

How is the amount of pension calculated after age 65?

 

The following points should be taken into account:

 

1. The value of points: this is the value of points acquired as defined by the law on the budget.

2. The value of points: the amount is fixed each year under the budget law. Any increase in value implies an increase in the contribution rate to maintain or increase the replacement rate.

 

When should you apply for old age pension?

 

The pension comes into force on the day of 65, if the request has been made within three months after that date.

If you continue to work, you have no right to a retirement pension after age 65.

The insured person, reaching the age of 65, has the option of choosing a stay of retirement benefits, when making the reservation, that he will continue to guide contributions to the general fund and to the pension fund until real time of retirement.

 

Capital retirement

 

Capital retirement - it is the return of contributions made to the pension fund. If a person is entitled to a pension, he gets his contributions to the pension fund in return, and these amounts are updated according to the consumer price index (CPI) modified by the budget law. The contributions corresponding to the twenty-four month period preceding the year of the granting of the retirement capital, this update does not apply. For the update of the monthly contributions made up to 1998, the average between the French and Spanish amount of the CPI is applied.

 

Payment to the insured returns the amount of contributions updated according to the CPI.

 

YEAR  IPC 

 

1998   1.62%

1999   2.68%

2000   4.32%

2001   2.77%

2002   3.40%

2003   2.88%

2004   3.35%

2005   3.10%

2006   3.20%

2007   3.87%

2008   1.98%

2009   0.00%

2010   1.60%

2011   2.50%

2012   1.10%

2013        0%

2014        0%

 

To update previous contributions, the average between the French and Spanish amount of the CPI is applied.

 

When do payments start?

 

- The right to payment of the pension capital comes into force on the date of presentation of the request from the insured at the age of 65.

- If the insured person has died and has not received pension capital, the widower or widow is entitled to half the pension capital, if he / she meets the required conditions.

 

When does the right to the allowance cease? What is the application deadline?

 

- The right to receive unique and lapsed services ends after three years from the occurrence of such rights on receipt. Consequently, if you have not applied for the retirement capital within three years after the date of reaching the required age, you lose the right to receive benefits.