The case of a Spanish worker forced to retire early has once again brought the issue of long contributory careers to the center of the debate. After almost five decades of discounts, she ended up being penalized by Social Security with a cut of close to a quarter of her pension.
Lola Meño says that she started working at the age of 14 in a typography, a common reality in the 60s and 70s. The company where she worked grew, changed location 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 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 legislation applies permanent reduction coefficients even to careers with more than 40 years of contributions, and does not provide for a specific exemption for those who have accumulated very extensive contributions.
The ASJUBI40 association, of which Lola is a member, also denounces that these penalties mainly affect those who started working very early and have no alternative but to retire before the legal age. Lola summarizes this perception by stating: “It is an injustice and we are fighting for dignity and justice.”
What Portuguese law says
In Portugal, early retirement is mostly 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 requirements 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 beneficiaries aged 60 and with 48 years of deductions, or aged 60 and 46, are exempt from penalties, as long as they started their contribution career before the age of 17.
Very long contributory careers
There is also the regime for very long contributory careers, enshrined in article 21-A of Decree-Law no. 187/2007, following Decree-Law no. 126-B/2017 and subsequent amendments.
Within this framework, beneficiaries who, at the start date of the pension, 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 similar to that of Lola Meño had occurred in Portugal, starting work at the age of 14 and having a 47-year contributory career at the time of her retirement at the age of 61, the legal framework would be different from the Spanish one.
In theory, someone with this profile would meet the requirements of the very long contributory career regime, being 60 or more years of age, at least 46 years of deductions and starting their career before the age of 17, being able to access early retirement without cuts in their pension under article 21-A.
A debate that remains current
The case, according to ASJUBI40, demonstrates that workers who started their professional lives very early remain particularly vulnerable when they lose their jobs close to retirement age and are pushed into early retirement with definitive cuts in their pension.
Although Portugal has created additional protection mechanisms for very long careers, many workers with irregular careers or long periods without discounts fall outside the criteria for very long careers and end up penalized, even after almost a lifetime of contributions.
Also read:
