The retirement age in Portugal is expected to increase by two years by 2050, reaching 68.4 years, the Organization for Economic Co-operation and Development (OECD) predicts in its report (Pensions at a Glance 2021) published on Wednesday.
The OECD report adds that Portugal is one of the seven OECD countries in which the retirement age corresponds to the evolution of life expectancy, such as Denmark, Estonia, Greece, Finland, Italy and Netherlands.
According to the document, in Portugal, where the legal retirement age increases by two-thirds of the increase in life expectancy, the increase will be “about two years” for those entering the labor market at the age of 22 and retiring after a full career , without reducing the pension.
According to the agency, the normal retirement age in Portugal will increase from 66.42 years in 2021 to 67.5 years in 2035, reaching 68.37 years in 2050.
Employees who quit due to unemployment should retire one year later than full-time employees to avoid pension cuts.
Although linking retirement age to average life expectancy makes pension systems stronger, the measure is insufficient, the OECD said, noting that lowering life expectancy is no longer seen as a “theoretical scenario” due to mortality. is related to the COVID-19 pandemic, a result that will be visible only in 2022.
According to the latest data published by Statistics Portugal (INE) which show an unprecedented reduction in life expectancy to 65 years, the retirement age in Portugal is expected to be reduced to 66 years and four months in 2023, after reaching 66 years and seven months in 2022.
The aging population has accelerated over the past decade, affecting pensions and countries such as Portugal and Spain “will face acute demographic challenges” that will affect the adequacy of pensions and economic viability, or both, the OECD warns.
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