Self-employed people who have reached retirement age but wish to continue working have been the subject of a major legislative update that could change the financial outlook for many.
From now on, retired self-employed workers who are still active in the labour market will be able to collect 100% of their pension, although initially they will only receive 45% of it.
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This change, designed to encourage work in retirement, raises a number of implications that are crucial to understand.
What changes for retired self-employed workers?
Until now, Social Security regulations for self-employed workers who retire but continue to work were subject to significant restrictions.
Self-employed workers used to face a significant reduction in their pensions if they decided to remain in the workforce. However, the new measure allows these professionals to receive 100% of their pension if they meet certain requirements.
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Under the reform, retired self-employed workers will begin receiving 45% of their pension and, after an adjustment period, they will be able to reach 100% of it while continuing to work.
Details of the new pension system for self-employed workers
The amendment is designed to provide flexibility and offer an additional incentive to self-employed workers who wish to continue contributing to the labour market even after reaching retirement age.
Social Security has established a transition period in which retirees begin with 45% of their pension. This percentage will gradually increase until reaching 100% once the self-employed person meets the conditions stipulated by the new regulations.
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How does this affect the self-employed?
This measure may be great news for self-employed people who have worked all their lives and who have decided to continue in business after retirement,
The possibility of receiving 100% of their pension while continuing to generate income can be an incentive to maintain their work and business activity. This reform can also serve as a way to retain talent and experience in the labor market, benefiting both professionals and the economy in general.
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