Old-age pension: find out how to increase its value and ensure a more ‘calm’ retirement

Concern about old-age pensions has intensified in recent years. The legal retirement age is gradually rising and longevity is extending, leaving many Portuguese people wondering how to guarantee an adequate income when they stop working.

There are strategies that can influence the value of the pension, some simple, others that require planning throughout your working life. According to DECO PROTeste, an organization specialized in consumer rights and personal finances, knowing these options is essential to ensure a more comfortable retirement.

Lifetime contributions

One of the determining factors for the pension is the number of years of contributions. The longer a person has contributed to Social Security, the higher the future pension amount will be. According to the same source, anyone who has had periods of intermittent work or career interruptions can settle outstanding contributions.

This possibility includes self-employed workers who choose to make voluntary payments, filling gaps that increase the final pension amount.

Long careers and demanding professions

Extending your career is another way to value your retirement. People with more than 40 years of contributions can benefit from bonus mechanisms that increase the value of the pension. For professionals with more physically demanding roles, there are specific schemes that allow early retirement without significant loss of income.

These measures have a direct impact on the amount that reaches the retiree’s pocket, especially in long careers or those interrupted by family care.

Work after renovation

The accumulation of the pension with income from work after retirement is another topic under discussion. Some recent legislative changes propose making these limits more flexible, allowing retirees to continue receiving additional income without compromising their pension.

According to the same source, this option is particularly relevant for those who wish to maintain a standard of living close to that of the period of professional activity or wish to increase savings for unforeseen situations.

Supplements and adjustments to the pension amount

There are also supplements aimed at those who have cared for dependent children or family members or whose careers have been interrupted. These benefits can significantly increase the value of the pension and reduce the risk of low income in old age.

Furthermore, the way the pension is indexed over time, considering inflation or salary developments, influences the purchasing power of retirees, being a crucial factor in ensuring financial stability.

Private savings and planning

In addition to the public system, private savings and occupational retirement plans are increasingly recommended. Contributing to pension funds or retirement insurance allows you to increase your total income, especially when financial planning starts early.

Financial education and early retirement planning are, therefore, essential to guarantee a more comfortable pension.

Strategies for a safer retirement

Increasing the old-age pension involves consistent contributions, career enhancement, specific supplements and private savings.

Knowing the options available and acting strategically throughout your working life can ensure a peaceful retirement, with sufficient income to face the challenges of old age without financial constraints. According to , knowledge and conscious action are determining factors in transforming an average pension into a safer and more comfortable pension.

Also read: