Retire earlier, without any penalties

Long Contribution Careers

Without applying the sustainability factor and also the reduction factor due to anticipation of the retirement age.

The Decree Law no. 126-B/2017, of October 6th, allows those who have made contributions over a long period of time or who have initiated their careers while very young, to retire without any penalties.

The above mentioned law will cover two groups of beneficiaries:

• Beneficiaries of the Portuguese Social security regime and of the social protection regime convergent with long contribution careers equal or superior to 48 years;

Or

• Beneficiaries of the Portuguese Social security regime and of the social protection convergent that, cumulatively

• • Initiated the professional activity with 14 years or less;
  • That, with 60 years or more, have at least 46 years of contribution career.

By filling out the conditions hereunder, it will be possible to request an early old-age pension without any penalty, namely, without application of the sustainability factor and without the application of the reduction factor due to anticipation of the retirement age.

The referred decree law also changes the rules on aggregations of contributions under the general Social security scheme or under the convergent regime with other social protection regimes. Therefore, the aggregation is now also considered to the following effects:

• Conditions on access to the early retirement pension under the flexibility regime and under long-term involuntary unemployment;

• Determination of the reduction or bonus factor taken into account for calculating the pension;

• The total amount of the contribution career years which may be relevant for the application of the pension formation rates that will differ depending on the contribution career years and on the amount of the reference remuneration.

Lastly, this decree law eliminates the application of the sustainability factor to disability pensions, in the moment of its conversion into old-age pensions, as from from the month following the one in which the pensioner reaches the normal retirement age.

This law takes effect on October 1st, 2017.