Sustainability factor “cuts” how many pensions? And what will the value be?

aEarly retirement pensions starting in 2022 will suffer a lower cut than this year, The sustainability factor is expected to decrease to 14.06%.. However, despite the government saying this cut has “limited” application, data from Business Magazine reveal it Up to 42% of pensions in CGA and 38% in Social Security.

“In social security, started in 2020 out of nearly 22,000 early pensions granted so far, About 38.3% had a sustainability factor”, refers to the Ministry of Labor data given to the same newspaper.

However, this “reduction” will be lighter in 2022: it should be the sustainability factor, which is the reduction applied to some early pensions, and also linked to life expectancy. To reduce from the current 15.5% to 14.06% in 2022.

In recent years, the sustainability factor has not been applied in some situations, such as people retiring before reaching legal age, but with contributing long jobs.

In addition to the sustainability factor, early retirement is also subject to reductions of 0.5% for each month of early retirement compared to the legal or personal retirement age.

The retirement age in Portugal is expected to rise by about two years until 2050

Portugal’s retirement age is expected to rise by about two years through 2050, to 68.4, as forecast by the Organization for Economic Co-operation and Development (OECD) in its ‘Pensions Overview 2021’ report released this month.

Portugal is one of seven countries in the Organization for Economic Co-operation and Development (OECD) in which the age to reach a pension is classified according to the development of life expectancy, such as Denmark, Estonia, Greece, Finland, Italy and the Netherlands, notes the OECD report.

Taking into account the latest data published by the National Institute of Statistics (INE), which shows an unprecedented decline in life expectancy at 65 years, the retirement age in Portugal is expected to drop to 66 years and four months in 2023, after He turns 66 years and seven months in 2022.

Read also: The average time for pension attribution by the CGA was 77 days in 2020