Portugal: lower legal retirement age in 2023

In 2023 Portugal’s legal retirement age will be set at 66 years and 4 months. The life expectancy coefficient that is used to calculate the legal age for claiming a pension has been revised downwards. This is a direct consequence of the Covid-19 health crisis and the resulting fall in life expectancy. Indeed, statistical life expectancy at age 65 has fallen by 4 months to 19.35 years for the 2019-2021 triennium. This is the first time since 2014 and the introduction of the life expectancy coefficient that the retirement age has been lowered. The impact could even be extended beyond 2023. The statutory retirement age was set at 66 years and 6 months in 2021 and at 66 years and 7 months in 2022. The second coefficient called the ‘sustainability coefficient’ which is used in relation to early retirement, is also indexed to life expectancy and is being reduced from 15.5% to 14.06% in 2022, which will also bring forward the possibility of early retirement. In Portugal full pension rights are awarded after 40 years of contributions.