The possibility of accessing retirement before the normal age continues to raise doubts, mainly because of the cuts associated with early retirement. Even so, it foresees situations in which it is possible to retire early without any direct penalties on the value of the retirement.
According to the gov.pt portal and Social Security, there are specific regimes that allow the retirement age to be brought forward without applying the sustainability factor, as long as certain requirements are met. These cases include the age flexibility regime and the very long contributory career regime.
According to the same official information, it is not enough to reach a certain age. The number of years of deductions, the moment in which these years were completed and, in certain cases, the age at which one started working are decisive factors. Furthermore, to be entitled to an old-age pension, the guarantee period of 15 calendar years with remuneration records remains.
Long careers allow you to anticipate without penalty
One of the main mechanisms is called the very long career regime. According to article 21-A of Decree-Law No. 187/2007, anyone who is at least 60 years old and has 48 calendar years of discounts can access early retirement without direct penalties.
There is another scenario in the same regime: workers who are at least 60 years old and have 46 calendar years of discounts can also benefit from this possibility, as long as they started their contributory career before the age of 17.
In these cases, the social security factor is not applied nor is the monthly reduction of 0.5% for each month in advance, in accordance with articles 35 and 36 of the same law.
There is yet another route to early access. Workers who are at least 60 years old and have 40 years of discounts while they are at that age can request early retirement under the flexibility regime. Here, according to the law, the social security factor is also not valid, but there may continue to be a 0.5% reduction for each month in advance if the request is made before the personal age for accessing the benefit.
Please note: “no cuts” does not mean maximum pension
Although retirement without penalties is often talked about, this does not mean that the value of the pension is the same as what would be obtained if the person continued working for more years.
As explained by the gov.br portal, the value of the retirement depends on the social protection system to which the person made contributions, the discounts they made and the age at which they retire. In other words, the contributory career and registered remunerations continue to weigh on the final value.
By leaving early, the worker stops adding new years of contributions and new remuneration, which can translate into a lower retirement, even when there are no direct cuts provided for by law.
Age and discounts influence the timing of retirement
Another important factor is the relationship between age and years of contribution. The Portuguese system allows the retirement age to be reduced depending on the contributory career.
According to article 20, § 8, of Decree-Law nº 187/2007, the personal age for accessing the pension can be reduced by four months for each calendar year of deductions above 40, without this resulting in access to the pension before the age of 60.
This means that workers with many years of deductions can retire before their normal age with fewer penalties, or even without a monthly reduction, if they have already reached their personal pension access age. Still, each case must be analyzed individually.
Social Security itself provides simulators that allow you to calculate the estimated value of the pension in different scenarios.
Not everyone can benefit from these rules
It is important to emphasize that these conditions do not apply to the majority of workers. Anyone who does not meet the criteria for very long careers or the conditions of the flexible regime may continue to be subject to the penalties provided for by law when opting for early retirement.
These penalties may include the sustainability factor and the reduction for each month in advance, depending on the applicable regime and the moment in which the pension is requested.
Therefore, the decision to leave early must always be considered based on a concrete analysis of the contributory career.
The case of Mário Centeno
A frequently cited example is that of Mário Centeno, who accepted early retirement under the rules in force.
Although many assume that he receives the entire pension, the reality is different. Centeno had no additional penalties associated with the anticipation, but the amount he receives only reflects the years of deductions made up to the moment of retirement.
In other words, there is no direct cut applied, but it also does not correspond to the maximum value that could have been reached if he had continued working for longer.
Planning is essential
Knowing the rules, monitoring the years of discounts and simulating different scenarios are fundamental steps to making an informed decision.
According to the gov.br portal, access conditions and the value of retirement depend on each worker’s contribution path and social protection system. Therefore, before proceeding, it makes sense to confirm the legal framework and simulate the impact of the decision.
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