Portugal's Pension System Overhaul Delayed: What You Need to Know

Government's Plans for Pension Reform

The Portuguese Government is considering changes to the current pension system, but these changes will not be implemented immediately. The Minister of Finance, Joaquim Miranda Sarmento, emphasized that the Social Democratic Party (PSD) will present proposals for adjustments to the Social Security system by the end of the current legislative term. However, any substantial changes will only take effect after the next legislative elections, which may not happen before 2028.

Currently, the government has ruled out any structural changes to the Social Security system in the next three years. This decision comes in the wake of a report from the Court of Auditors questioning the sustainability of the current system. To address these concerns, the government has established a working group to analyze the situation.

When asked about potential impacts on pensions, Sarmento reiterated that there will be no major changes during this legislative term. He hinted that the next electoral campaign will include specific measures related to the pension system, although he did not disclose any details.

The ongoing study, which will inform these future measures, involves collaboration with the Academy and aims to achieve consensus with the opposition, particularly with the Socialist Party (PS), given the long-term implications of any changes. These developments were discussed during the premiere of the new program "Mistério das Finanças" on CNN Portugal, in partnership with ECO.