The case of a Spanish worker forced to retire prematurely brought the issue of long contributory careers back into debate. After almost half a century of discounts, she ended up being penalized by Social Security for almost 1/4 of her pension.
A career started in adolescence
Lola Meño states that she started working at the age of 14 in a typography, something common in the 60s and 70s. The company where she worked grew, moved to another city and ended up going into insolvency. At the age of 59, she became unemployed and, unable to return to the job market, was forced to request early retirement at 61, according to the Spanish digital newspaper Noticias Trabajo. He explains in a video: “After deducting 47 years and a few days, I see my pension reduced by 24 percent.”
Penalties that do not distinguish between very long careers
Spanish law also applies permanent reducing coefficients to careers lasting more than 40 years, and does not provide for a specific exemption for those with very long careers.
The ASJUBI40 association, of which it is a member, denounces that these penalties mainly affect those who started working very early and have no alternative but to retire before the normal age. Lola sums up this feeling by saying: “It is an injustice and we are fighting for dignity and justice.”
What Portuguese law says
In Portugal, early retirement is mainly regulated by Decree-Law No. 187/2007, which requires, in the form of age flexibility, 60 years of age and 40 years of discounts. When these criteria are met, two permanent penalties provided for in the same diploma apply: a 0.5% cut for each month in advance and the sustainability factor, associated with average life expectancy.
There is also the regime for very long contributory careers, provided for in article 21-A, following Decree-Law no. 126-B/2017. Only those who are 60 years old and have 48 years of discounts, or 60 years old and 46 years old, are exempt from penalties, as long as they started working before the age of 17.
Very long contributory careers
There is also the regime for very long contributory careers, provided for in article 21.º-A of Decree-Law no. 187/2007, following Decree-Law no. 126-B/2017 and subsequent amendments. Under this regime, beneficiaries who, on the date the pension starts, meet one of the following conditions can access early retirement without penalty:
- Be at least 60 years old and have 48 years of discount;
- Be at least 60 years old and have 46 years of deductions, as long as they started deducting before the age of 17.
In these cases, neither the 0.5% cut per month in advance nor the sustainability factor applies.
If it were in Portugal, what could happen?
If a journey like Lola Meño’s had taken place in Portugal, with starting work at the age of 14 and a 47-year contributory career at the time of her retirement at the age of 61, the situation would be different from the Spanish one.
In theory, someone with this profile would meet the requirements of the very long contributory career regime (60 or more years of age, at least 46 years of deductions and start of career before the age of 17), being able to access early retirement without pension cuts under article 21-A.
A debate that remains current
The case, according to ASJUBI40, shows that workers who started their professional lives very early remain vulnerable whenever they lose their jobs close to retirement age and are pushed into early retirement with definitive pension cuts.
Although Portugal has introduced additional protection for very long careers, many workers with irregular trajectories or long interruptions fall outside the criteria for very long careers and end up penalized, even after almost a lifetime of contributions.
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