PSOE and PP join forces to block Podemos proposal ending early retirement penalties for 40-year contributors

The vote

On 11 June 2026, the Congress of Deputies rejected an amendment proposed by Podemos to eliminate coefficient reductions for workers who retire early after accumulating 40 or more years of Social Security contributions. The amendment was attached to a law creating a voluntary pathway for affiliated professionals to transfer their mutual society contributions into the Social Security system. PSOE and PP voted against the measure, while Vox abstained and the remaining parties—including Sumar, the PSOE's coalition partner, as well as Junts, UPN and Coalición Canaria—supported it.

The penalty system

Spanish workers who retire before the statutory age face permanent reductions in their monthly pension. The standard legal retirement age is 65 for those with at least 38 years and 3 months of contributions, or 66 years and 10 months for those with shorter contribution histories. Coefficient reductions range from 3% to 21% of the pension, depending on how early retirement begins and the total years contributed. Under the current rules, even a worker with around 41.5 years of contributions who retires nearly two years early can see a roughly 15% cut.

Cost argument

PSOE and PP argued that eliminating the penalties would impose an unsustainable cost on the public system. The government pegged the annual price tag at €3,358 million. Of that, €1,345 million would come from removing reductions for voluntary early retirement and €2,013 million from cases of involuntary early retirement.

Shifting positions

The vote marks a reversal for the PSOE, which in November 2025 supported a non‑binding Podemos motion that called for the same policy change. That earlier motion had no legislative force; Thursday’s amendment would have been legally binding. The PP also hardened its stance, having abstained in November before voting against this time. The outcome prompted the association of affected pensioners, ASJUBI40, to call the decision a “traición histórica” (historic betrayal).

The PP and PSOE voted against letting retired people who have contributed for more than 40 years receive their full pension. Bipartisanship against pensioners, again, like in 2011, like always. Arms yes, pensions no. This is unbearable.

Reactions

ASJUBI40 accused both parties of hypocrisy, noting that PSOE used sympathetic language during the debate but ultimately voted down the proposal. The group, which represents workers who saw their pensions permanently reduced despite four decades of contributions, said it would launch an aggressive campaign against the socialists. Podemos leader Ione Belarra had urged the PSOE before the vote to side with the people, calling the current situation absolutely unjust for the roughly 900,000 pensioners affected.