ONP: If I retire at age 50, how much pension could I receive?

In Peru, the Pension Standardization Office (ONP) allows workers to access a pension from the age of 65. However, there is the option of retiring early from the age of 50. This alternative may be attractive for those who wish to stop working before the standard age, but it involves certain conditions and reductions in the amount of the pension.

For those who have contributed to the system and are considering retiring early, it is crucial to understand the requirements and the economic impact this decision can have. Below is everything you need to know about the early retirement in the ONP.

ONP 2024: What is early retirement all about?

Early retirement in the ONP is designed to allow workers who have made contributions for at least 25 years to retire before the age of 65. This system is designed for those who, for various reasons, wish to access their pension early. The requirements and procedure for applying for this benefit are specific and require meeting certain criteria in order to access the benefits.

In order to be eligible for early retirement, members must be at least 50 years old and have met the requirement of 25 years of contributions. It is important to note that this decision entails a permanent reduction in the amount of the pension, which is a crucial aspect to consider before taking this step.

If I retire at age 50, how much pension could I receive?

Normally, people must retire at age 65 and have 20 years of contributions, but when retiring at age 50, the pension amount is reduced by 4% for each year of retirement compared to age 65. This means that, by retiring 15 years earlier, the pension could be considerably lower.

Andrés Escalante, director of the Administration and Finance program at UPC, told Andina that “although the main drawback of early retirement could be the reduction in percentages, which could result in a reduction of more than 20% in the pension, it is important to keep in mind that all of this will depend on the ability to generate income today in order to have more in the future.”

This reduction is not reversible and is not recalculated upon reaching age 65, so it is vital to carefully evaluate the long-term financial implications before making this decision.

Early retirement from the ONP: what are the requirements?

To access early retirement in the ONPmembers must meet the following requirements:

• Having reached 50 years of age.
• Having made at least 25 years of contributions, equivalent to 300 contribution units.

In addition, for those who apply for disability retirement, it is necessary to have a resolution from the National Council for Disability, be 55 years old and have made 20 years of contributions. The documents necessary to prove these contributions include work certificates, pay slips, settlements of service time and proof of contributions issued by the IPSS or EsSaludamong others.

How to apply for early retirement from the ONP this 2024?

The process to request early retirement in the ONP It can be done virtually or in person. To do it virtually, you must enter the onpvirtual.pe platform, select the option “I am contributing” and then “I want my pension.” Next, you must complete your personal and contact information. ONP advisors will contact you to continue with the process.

If you choose to process your application in person, the ONP has service centers available from Monday to Friday from 8:00 a.m. to 5:00 p.m., and also at the MAC Centers from Monday to Saturday.