The retirement age has returned to the center of political discussion in Portugal, at a time when access to an old-age pension continues to be linked to the evolution of average life expectancy. The possibility of returning to age 65 revives a delicate question: to what extent would it be possible to lower the retirement age without putting even more pressure on Social Security?
The topic, according to , gained strength after Chega defended the gradual reduction of the retirement age to 65 years as a political condition to make labor reform viable in Parliament. The proposal was criticized by Pedro Passos Coelho, who considered it “absurd and unrealistic”, further stating that “not even socialists have the courage to lower the retirement age”.
What does the law currently say?
For 2026, the normal age for accessing old-age retirement is set at 66 years and 9 months, according to , of December 30th.
In 2027, the retirement age will rise to 66 years and 11 months, according to , of December 29th. The same ordinance explains that this increase is the result of the evolution of average life expectancy at age 65 between 2024 and 2025.
Sustainability factor
The social security factor is a rule used to calculate some pensions, especially in situations of early retirement. The , of January 16, which approves the general bases of the Social Security system, establishes that this factor is related to the evolution of average life expectancy and serves to adapt the system to demographic and economic changes.
The also provides for this mechanism in calculating pensions, associating it with the evolution of average life expectancy at age 65. For old-age pensions starting in 2026, the social security factor is set at 0.8237, according to Ordinance No. 476/2025/1. In practice, when this factor applies, it can significantly reduce the value of retirement.
Why does the drop to 65 divide opinions?
The discussion is sensitive because the Social Security system is based on the principle of contribution. Law No. 4/2007 establishes that this system must be fundamentally self-financed, based on the relationship between the obligation to contribute and the right to benefits. The same law determines that workers and, when applicable, employers are obliged to contribute to Social Security schemes.
Furthermore, the report on the financial sustainability of Social Security, annexed to the State Budget proposal for 2026, precisely analyzes the Social Security-Payroll System, including income from employee contributions, contributions from employers and expenditure on benefits, including pensions.
This means that a generalized drop in the retirement age would have a direct impact on public accounts, because it could increase the number of retirees and reduce the contribution period. On the other hand, supporters of the measure argue that many workers reach the end of their career with physical exhaustion and difficulties in remaining in the job market until they are close to 67 years old.
Is lowering the pension to age 65 possible?
From a political and legal point of view, it would be possible to lower the retirement age to 65, but this would require a change in the law currently in force. The current regime links the normal pension access age to average life expectancy, so returning to 65 would mean changing this formula or creating an exception.
The central issue, therefore, is financing. Without a concrete proposal on how to offset the increase in spending, lowering the retirement age may be attractive to many workers, but difficult to implement without impacting the sustainability of Social Security.
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