On 29 November the Portugal’s budget was adopted. Retirement age is extended by three months in 2017 to sixty-six years and three months, and by a further month in 2018. In addition, early retirement pension amounts will be lowered by 0.50% more than in 2016 making a total penalty of -13.88%. Portugal applies a ‘longevity coefficient’ that is based on life expectancy from 65 years of age in the country. Laboring in the aftermath of the austerity years (2011-2014) the current government has announced it intends to review the calculation method.
Extension in retirement age. In 2017 the legal retirement age will be sixty-six years and three months and a year later in 2018 this will be extended a further month to sixty-six years and four months.
Early retirement penalized. The penalty for taking early retirement will rise by 0.50% as compared with 2016 to 13.88% of the pension amount. Early retirement requests in the private sector will only be treated when the future retirees aged sixty and has forty years of contributions. The...
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