This Monday, the Government made official the retirement age that will come into force in 2026: 66 years and nine months. The confirmation comes through a decree published in Diário da República, which also specifies the increase in the cut in the sustainability factor applied to early pensions, which will increase to 16.93% in 2025, according to .
According to the document, the decision is based on the evolution of average life expectancy at age 65, which rose from 19.75 years in 2023 to 20.02 years in 2024. This data is used in the calculation stipulated in article 20 of the Decree -Law nº 187/2007. “Taking into account the evolution of average life expectancy at age 65 […] the normal age for accessing retirement in 2026 is 66 years and nine months”, states the ordinance signed by the Secretary of State for Social Security, Jorge Campino.
Evolution of retirement age
Until 2013, the normal retirement age was set at 65. In 2014, it increased to 66 years, and since then has been adjusted according to gains in average life expectancy at 65 years.
Between 2019 and 2020, for example, the pension access age stabilized at 66 years and five months due to an insignificant increase in average life expectancy. However, in 2023, there was an atypical decline to 66 years and four months, attributing this change to mortality associated with the Covid-19 pandemic. In 2025, the retirement age will increase to 66 years and seven months, worsening again to 66 years and nine months in 2026.
Discounts and “personal retirement age”
It is important to note that workers with more than 40 years of contributions benefit from the “personal retirement age”. This measure allows a four-month discount on the legal age for each additional year of discounts over 40 years old.
Impact on early pensions
Regarding early pensions, the ordinance also confirms that the sustainability factor cut will rise to 16.93% in 2025, compared to the 15.8% applied in 2024. This factor is calculated based on the ratio between the average life expectancy of 65 years in 2000 (16.63 years) and the average life expectancy in the year before the pension started.
Furthermore, early pensions continue to be subject to an additional fine of 0.5% for each month advanced in relation to the legal retirement age. There are, however, exceptions: workers aged 60 and with at least 48 years of contributions, or with 46 years of contributions since the age of 16, are not subject to these penalties. Professionals from sectors considered to be experiencing rapid wear also benefit from special conditions, and the list of professions covered is under discussion in the Social Concertation.
Cuts and exceptions
For workers who request early retirement at age 60 with 40 years of contribution, the social security factor is not applied, although the fine of 0.5% per month in advance is maintained.
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