Rising housing prices and rising rents are pushing thousands of retirees into increasingly precarious situations. Many use credit to pay the costs, while others are forced to move into rented rooms. According to DECO PROteste, a consumer protection association, housing has surpassed unemployment, divorce and illness as the main cause of debt for Portuguese families.
Over-indebtedness among pensioners
According to the DECO PROteste Financial Protection Office, a significant increase in requests for support from pensioners has been recorded.
Natália Nunes, responsible for the office, highlights the change in the origin of these requests and warns of the effects of the housing crisis on the most vulnerable retirees. Many use personal loans or credit cards to pay their rent, while others end up accepting to live in rooms, something that a few years ago would have been unthinkable for those who have ended their working lives.
Since the beginning of the year, around three thousand retirees have sought information or support from the same source, representing around 15% of the total number of indebted families monitored by the association. More than half live in rented houses, almost 10% continue to pay housing loans and 11.5% live in rooms or in precarious solutions. Only 24% have their own home.
Natália Nunes explains that these families, with average pensions of 1150 euros, support an average of four active loans, with monthly payments of around 680 euros, increasing the effort rate to around 60%. “They are retirees without savings, faced with increases in expenses ranging from food to rent”.
Lack of alternatives and financial literacy
The same source also warns of the scarcity of financial products accessible to small savings. According to the same source, interest rates on term deposits do not always cover inflation, making it difficult to accumulate reserves for retirement.
The association advocates the creation of simple and transparent solutions, accessible to all citizens, as well as financial literacy programs implemented by municipalities or through campaigns on social media.
The increase in Euribor rates since 2022 has worsened the indebtedness of families with mortgage loans, although the recent drop in rates and some Government measures have alleviated the pressure. Still, housing remains the biggest financial challenge for retirees.
On World Savings Day, the association reinforced the importance of planning for retirement and called for State intervention to create savings incentives.
According to , the situation of retirees with lower incomes is a growing concern.
The absence of savings makes them particularly vulnerable to unexpected expenses, and the association insists on the need for structured responses that protect this segment of the population, increasingly pressured between reduced pensions and rising incomes.
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