The story of early retirement, pension cuts and the way in which many elderly people are forced to supplement their income with savings from a lifetime of work is once again gaining relevance in a context of an aging population and growing pressure on pension systems. The journey of Francisco Carrasco, an 83-year-old retiree, helps to understand the real impact of these decisions over time.
Francisco Carrasco, a retired Spaniard who is now 83 years old, looks back with the awareness of someone who dedicated 45 years to work, inside and outside Spain. Throughout his career he traveled practically the entire country and part of abroad, in a professional path marked by effort, ambition and gradual ascension.
He started working very early, still a teenager, accepting everything that came his way. At the age of 13, his big opportunity arose, when he joined a multinational company linked to engineering and technology as an apprentice, which would definitively mark his professional future, according to the Spanish digital newspaper Noticias Trabajo.
A career built step by step
Over the years, his dedication allowed him to rise through the company’s hierarchy. He became a delegate in Andalusia, then took over the management of a branch in Seville and ended up joining the company’s board of directors in Spain, as secretary.
This path brought him responsibilities, but also experiences that he remembers with satisfaction. Traveling frequently, meeting people and working in an international environment left him, according to him, “good times” and “very intense memories” of a demanding but rewarding phase of his professional life.
Decision to retire early at age 60
At the age of 60, Francisco made the decision to retire early, a change that was not easy. Accustomed to an intense work rhythm, he felt the need to remain active and decided to open a hardware store, a project he continued until he was 65 years old.
It was only at that age that he decided to definitively retire from professional life, then entering into full retirement, according to the same source.
Early retirement had direct consequences on the pension value of this retiree, now 83 years old. Because he retired before the legal age, his monthly payment was reduced by 35%, a cut that still affects his budget today.
Despite this, the pension allows you to maintain some activities, such as DIY, using the computer and some occasional trips. Still, he recognizes that living on this income alone would be difficult these days.
Importance of accumulated savings
To maintain his financial balance, Francisco also depends on the savings he managed to accumulate over 45 years of work, says the same source. This reserve allows you to live with some peace of mind, although I recognize that not all retirees have this possibility.
As he explains, cited by the same source, there are pensions that do not reach 800 euros per month, which makes it practically impossible to cover expenses such as house rent, electricity, medicines and other essential expenses.
A message for the younger generations
With the experience of someone who has gone through all stages of active life, he leaves clear advice for younger people.
He argues, cited by , that they should fight for their goals, try to choose a profession they like and, above all, start thinking about retirement early, because, as he highlights, it comes faster than many imagine.
Reality of Portuguese pensions
In Portugal, early retirement can also result in very relevant cuts. In the general regime, the law provides for a reduction of 0.5% for each month in advance (article 36 of Decree-Law no. 187/2007) and, when applicable, the pension may also be impacted by the sustainability factor (article 35 of the same law). For next year, the normal age for accessing the retirement pension was set at 66 years and 9 months by Ordinance No. 358/2024/1, which helps to explain why bringing forward several years can easily lead to penalties above 30%, depending on the pensioner’s specific situation.
And, when looking at the amounts received, the scenario of pensions below 800 euros is no exception: according to data cited in a work by the Bank of Portugal, in 2024, half of old-age pensioners received a pension below 462 euros.
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