Retirement for the self-employed: what your contributions buy

Your BPS pension contributions aren't a lost tax: they're building your future pension. Here's the basics, honest and plain, under the new Sistema Previsional Común (Law 20.130).

The requirement: years and age

For the common pension under the new system you need two things: years of work and age. The BPS sums it up:

The BPS states it like this:

«Se requieren como mínimo 30 años de trabajo y 65 años de edad.»

In English: A minimum of 30 years of work and 65 years of age are required.

Important: the age of 65 applies fully after a transition. For those born 1973–1976 it ranges from 61 to 64 by year; the prior régimes still apply to anyone reaching the cause until end-2032. The 30 years of work remain.

Mixed system: BPS + AFAP

The new régime is mixed and mandatory: part of your contributions goes to BPS (intergenerational solidarity) and part to an AFAP (individual savings). So your future pension combines both sources.

How it's calculated

The basic pension salary takes the average of your best 20 years of pay. A rate that rises with age at retirement and with years contributed is applied to it. In plain words: more years and retiring later = a better pension.

For the self-employed

Every month you contribute adds to those work years; the months you don't, don't count. So keeping contributions current isn't only about avoiding fines — it's literally buying years of pension. See our social-contributions and monthly-cost posts.

The common pension, at a glance

In short: the common pension needs 30 years of work and age 65 (with a transition), in a mixed BPS + AFAP system, computed on your best 20 years. Every contribution kept current adds up. Verify your situation and the current rules with the BPS.