Portugal's Government Plans to Restrict Early Retirement: What You Need to Know

Government's New Measures on Early Retirement

The Portuguese Government is preparing a series of measures aimed at ensuring the sustainability of Social Security, which includes restricting access to early retirement. This was reported by Correio da Manhã (CM), citing the Ministry of Social Security's response to an audit by the Court of Accounts (TdC) released last week.

Reevaluation of Early Retirement Policies

The reevaluation of the early retirement regime is a key objective for Minister Maria do Rosário Ramalho. She emphasizes the importance of promoting active life, which would ensure a greater number of contributions to the system. This commitment is outlined in the official response to the TdC, confirming the government's intention to prioritize sustainability.

Proposed Changes and Current Regulations

In practice, these measures aim to halt access to retirement before the legal age. Furthermore, the government plans to establish and consolidate a complementary Social Security system that will play a central role in taxpayers' decision-making. They have already notified the European Commission about these measures, targeting medium-term budget sustainability in the pension system in Portugal.

Currently, workers with long contribution careers (46 years) or those in strenuous professions can retire early. Additionally, individuals aged 60 with 40 years of contributions, as well as long-term unemployed individuals laid off involuntarily from the age of 52, are also eligible for early retirement under existing laws.