Early retirement continues to be one of the main issues that concerns many Portuguese workers who face prolonged periods of unemployment. This year, the special regime for long-term unemployed remains in force, allowing access to the pension before the legal age, currently set at 66 years and 7 months, as established by Ordinance No. 414/2023 and the information available on the Social Security Direct portal. Even so, it is an alternative surrounded by strict conditions and significant penalties on the final value of the pension.
This regime can only be activated in cases of involuntary unemployment, that is, when the worker loses his job for reasons beyond his control. In addition, there are additional requirements: you must be registered with the employment center, have been unemployed for more than 12 months and have exhausted your unemployment (or social) benefit. A minimum number of years of contributory career for Social Security is also required, according to the same source.
Two predicted scenarios
The regime differentiates between two situations depending on the age at which unemployment occurred:
Unemployment from the age of 52
In this case, the worker can request retirement from the age of 57, as long as they have at least 22 years of deductions. The pension suffers two reductions: 0.5% for each month in advance compared to the age of 62 and the application of the sustainability factor, which in 2025 corresponds to 16.93%, a value set by Ordinance No. 358/2024/1.
Example: a worker who requests retirement at age 60, that is, three years before the reference age (62), will have an 18% reduction in anticipation, added to the 16.93% of the sustainability factor. In total, the loss exceeds 34%, says the same source.
Unemployment from the age of 57
In this situation, retirement can be requested from the age of 62, as long as the worker has a minimum of 15 years of deductions. Here, the penalty of 0.5% per month does not apply, but the sustainability factor of 16.93% continues to apply.
Penalties and financial impact
The combined effect of the monthly penalty and the sustainability factor can substantially reduce the value of the pension, especially for those who request retirement at age 57.
On the other hand, even workers with long careers must be careful: the law only counts a calendar year of deductions if at least 120 days of contributions have been recorded, says the same source.
There is also an important nuance for those who terminated by mutual agreement within the conditions that allow access to this regime: in these cases, an extra penalty of 0.25% applies for each month between the age of 62 and the normal retirement age. This reduction automatically disappears when the worker reaches the legal age to access the pension.
Why does the sustainability factor exist?
Created in 2008, this mechanism adjusts the value of pensions to average life expectancy. In practice, the more life expectancy increases, the greater the reduction applied to early retirement. In 2025, the sustainability factor set at 16.93% by Ordinance No. 358/2024/1 represents one of the highest values ever, according to the previously cited source.
A safety net for extreme situations
Despite the penalties, this regime works as a safety net for those who, at an advanced stage of their career, lose their job and have great difficulty returning to the job market.
The majority of requests come from sectors where professional reintegration is more difficult after the age of 50, such as construction or the manufacturing industry. Experts from Doutor Finances, cited by the same source, recommend caution, however. “It is essential to simulate the value of the pension before moving forward, because the reductions are permanent and cannot be revised.”
How to request early retirement
The request must be made through or in person at Social Security services. It is necessary to present documentation relating to unemployment, including proof of registration with the IEFP and that the benefit has been exhausted. On the online platform it is possible to carry out personalized simulations that allow you to calculate the likely value of the pension with all the reductions applied.
Summarizing all the information, early retirement due to long-term unemployment can represent a solution for thousands of Portuguese people who, after the age of 50, are left without a job and without prospects of reintegration. However, cuts can exceed 30% of the pension value. Therefore, before proceeding, it is advisable to always use official Social Security simulators or seek specialized financial advice.
Fun facts about early retirement
Portugal is one of the European Union countries with the highest percentage of workers taking early retirement due to long-term unemployment. According to data from the European Commission, around 18% of new pensioners in Portugal enter the system through this special regime, which demonstrates its importance as a social protection mechanism.
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