The age of reform in Portugal will rise again in 2026, settling in the 66 years and 9 months. This change, announced based on the average life expectancy data, represents the new maximum since the legal age began to be automatically adjusted in 2014.
According to the National Institute of Statistics, life expectancy at age 65 increased to 20.02 years, which justifies the increase of two months compared to the previous year. In 2025, the legal age will be 66 years and 7 months. In 2026, two more rises.
Penalties for those who want to reform before
For those who consider working early, the new rules mean a worsening of cuts. The sustainability factor, a mechanism that reduces the value of the early pension, rises to 16.9% by 2025, which should be maintained by 2026. This adds to the penalty of 0.5% for each month of anticipation in relation to the legal age.
According to the calculations, those who reform a year before the legal age will face a combined loss of 22.9% in the monthly pension: 16.9% of the sustainability factor, plus 6% of the monthly penalty.
Exceptions for long and very long careers
There are, however, important exceptions. Those who are at least 60 years and 40 years of contributions are exempt from the sustainability factor, although they continue to be a monthly cut of 0.5% per month missing.
In addition, for workers with over 40 years of discounts, it is possible to reduce up to four months of the age of renovation for each additional career year. For example, a 43-year-old worker can reform a year earlier, with softer penalties.
Those who started their career before the age of 16 and have accumulated 46 years of contributions can reform without any penalty, provided that it meets the criteria defined by social security.
Account before deciding
Given this scenario, planning becomes even more essential. Working a few more months can mean an important difference in the lifetime pension. Social Security experts recommend making simulations and evaluating the impact of each decision.
For those close to the renovation, the new calendar and their penalties can be an incentive to stay more time in the active. But it is also a call of attention to start thinking about it in advance.
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