The Portugese pensions environment has been hit by a new government legislative change to the social security landscape.
The initiative arrived last month in the form of a new law significantly changing social security rules.
Previously, pension rights were only available from age 65 onwards or 60 in special cases.
Now, any person completing 30 years in the state pension scheme may request a pension from age 55, with an ‘early retirement pen-alty’ of 4.5% per annum up to age 65.
If a person elects to receive a pension after age 65 with more than 40 years of social security scheme membership, then a pensions bonus of 10% per annum is available, Retirement may not be deferred after age 70.
Portugal’s pension accrual rate remains unchanged at 2% per annum and normal eligibility pension conditions for a pension from age 65; scheme membership of 15 years minimum remains intact. A person’s final average salary, used to determine the actual benefit, also remains the same, being the best 10 years of the last 15 years prior to retirement.