Retirement age continues to be one of the issues that weigh most heavily on the accounts of those approaching the end of their working lives. Whenever there is a legal update, the plans of thousands of workers also change who are already calculating the date on which they will be able to request the old-age pension and the possible impact this will have on the family budget.
In 2027, the normal age for access to old-age retirement under the general Social Security regime rises to 66 years and 11 months. This year, this age is set at 66 years and 9 months, which means an increase of two months from one year to the next, according to Ordinance No. 358/2024/1.
New rise in age
The explanation is in the formula provided for in Decree-Law nº 187/2007. The law determines that the normal age for access to retirement by age varies according to the evolution of average life expectancy at 65 years of age, and is then published in a decree by the Government in the second year prior to the one to which it refers.
In the case now set for 2027, the ordinance took into account the increase in average life expectancy at 65 years between 2024, with 20.02 years, and 2025, with 20.19 years. It was this evolution that led the Government to determine that the legal retirement age in the general regime will increase to 66 years and 11 months.
What changes for those who are close to retirement
In practice, anyone who only meets the age requirements next year will, as a rule, have to wait two months longer than someone who retires this year. This means the change could force many workers to revise calendars, especially when they had already expected to leave as soon as they reached the normal pension access age.
The same ordinance also set the sustainability factor applicable to old-age pensions starting in 2026 at 0.8237, in cases where this mechanism is legally called to intervene.
Although this number refers to the year 2026 and not the legal age of 2027, it shows that the issue of early retirement remains especially sensitive for those who are considering leaving before the normal age.
Early retirement remains in the spotlight
According to the Social Security Practical Guide to Old-Age Pensions, under the flexibility regime, a fine of 0.5% continues to be applied for each month in advance of the so-called personal retirement age. This helps to explain why an increase in the legal age, even when it seems small, can have concrete effects on the accounts of those thinking of applying for a pension earlier than normal.
At the same time, not all advance regimes follow exactly the same logic. Decree-Law No. 70/2020 eliminates the sustainability factor in all special regimes listed in article 2, but the annual update of the access age based on average life expectancy does not apply in the same way to all of them. Article 3 makes this update only for some specific regimes, not for all of those in article 2
What should you do now
For those who are just a few years away from retirement, the most prudent thing is to confirm their contribution career and do the calculations in advance.
Social Security itself now also makes the Pension Simulator available in the mobile application, in addition to Direct Social Security, precisely to allow workers to estimate the value of their future pension based on recorded discounts.
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