The legal retirement age in Portugal will increase in 2027, rising to 66 years and 11 months, and workers who claim their pension before that age will suffer significant cuts. This year, for example, anyone who opts for early retirement could lose more than 100 euros per month, plus the penalty applied for each month of early retirement.
The change results from a decree published in the Diário da República and maintains the automatic mechanism that adjusts the age of access to the pension to the evolution of average life expectancy. According to SIC Notícias, this new limit reflects the increase in longevity and the demographic changes registered in recent years, directly affecting future pensioners who retire early.
The retirement age will rise again in 2027
In 2027, the normal retirement age will be set at 66 years and 11 months, two months above the forecast for January 2026. According to the same source, this update is part of a trend of gradual and constant increase in the legal age, interrupted only exceptionally due to the impact of the pandemic in 2023 and 2024.
This increase is not arbitrary, but reflects the rules in force since 2014, which link retirement age to average life expectancy. The publication adds that the measure aims to adapt the pension system to the country’s demographic reality and guarantee the financial balance of the regime.
How is the legal retirement age calculated?
The legal retirement age is determined based on calculations by the National Statistics Institute (INE), which assesses the average life expectancy at 65 years of age. The same source writes that this indicator is periodically reviewed and used to automatically update the minimum age for access to the pension.
At the end of November, INE estimated that, between 2023 and 2025, a Portuguese person will live on average another 19 to 20 years after turning 65. This slight increase in relation to the previous period justifies the new increase in the retirement age and the adjustments applied to the calculations.
What has changed since 2014
Until 2013, the legal retirement age remained stable at 65, regardless of demographic changes. According to the same source, it was from 2014 onwards that it began to be indexed to average life expectancy, starting a cycle of continuous increases, only interrupted by the effects of the pandemic on mortality.
It should be noted that this automatic mechanism has been producing regular increases in the retirement age, reflecting the aging of the population and the need to balance the pension system with the country’s demographic and economic evolution.
Cuts to early retirement in 2026
Anyone who requests early retirement (before reaching 66 years and 9 months) this year will face a 17.63% cut in the value of the pension awarded. This reduction corresponds to an increase applied to early pensions and applies to all months in advance of the legal age.
In addition to this base cut, there is also an additional penalty of 0.5% for each month in advance, according to the same source. For a worker with a planned pension of 600 euros, the base cut represents 105.78 euros per month, not counting the extra penalty, and the total lost can easily exceed 100 euros per month.
Portugal and the European trend
The increase in the retirement age in Portugal follows a trend seen in other European countries. According to , in the Nordic countries and Italy, the retirement age is already 67 years old, for both men and women, reflecting the increase in longevity and the need to adjust pension systems to demographic realities.
These measures highlight the pressure on pension systems and the need to balance the value of pensions with the sustainability of the regime, especially in contexts of population aging and increasing average life expectancy.
Also read:
