Expense increases more than revenue

The growth rate of pension expense (11.8%) surpassed that of revenue (10.4%) in 2024. The warning is from the Public Finance Council (CFP), even revealing that it has obtained the largest budgetary surplus from at least 2010, reaching 5,595 million euros.

But explains this trend: « In addition to the recurring underestimation of social contributions, transfers from the State Budget had to be reinforced in view of the initially provided, apparently to address decisions of social benefits taken after the discussion and approval of the budget, including those intended to increase the purchasing power of pensioners, such as the extraordinary supplement of pensions. »

Also the Ministry of Worked, Solidarity and Social Security said that this increase in expense is related to the fact that 2024 had had «A hybrid nature, as the budget was prepared by the responsibility of a government different from the one that executed it most of the year» For this year, the government says that «Budget execution, accumulated for the January-year period, shows that the rate of revenue variation will be above the expense variation rate: 9.4 % and 8.2 % compared to the same period, respectively».

Effective social security revenue reached 41.3 billion euros, plus 3.9 billion that in 2023, but it was not enough to follow the pace of expense, which grew 3.8 billion to 35.7 billion euros. The number of workers with remuneration declared to social security increased by 2.8%, from 4.18 million to 4.3 million, while the total amount of remuneration recorded a homologous variation of 8.6%, portraying social security figures.

1.5 million receive up to 700 euros

As for values, nearly one million of the Social Security Reformed received at the end of 2024 an old age pension of up to 500 euros, the equivalent of 51% of the total, and below the poverty threshold fixed for that year. A value below the poverty threshold fixed for that year, which was 542 euros, assuming the annual performance divided by 14. The data were advanced by CGTP_E indicates that of this total, almost seven out of ten (703.5 thousand, equivalent to 68.2%) were women and 31.7% (282.7 thousand) were men. The other 25.8% received between 500 and 750 euros, corresponding to close to 497,000 old age pensioners of both sexes.

Made the bills, almost 1.5 million retired received up to 750 euros, that is, 77% of the total social security pensioners (1.92 million).

According to the document, there are also 102,789 that earned between 1,200 euros and 2,000 euros, 26,907 who received between 2,000 and 2,500 euros, 14,872 that increased between 2,500 and 3,000 euros, while 26,880 received 3,000 euros or more. That is, about 2% (41,752,000) received an old age pension equal to or greater than 2,500 euros.

To the Sunriseeconomist Eugénio Rosa states that «This enormous poverty that continues to exist in Portugal and that tends to remain» results from the combination of a set of factors that have not changed in recent years, considering that, « Much of them have even worsened ».

One of the reasons that points to low wages, noting that in 2008 the cost/hour work was in Portugal 56.5% of the European Union average and, in 2024, decreased to 54.3% (48.8% of the media of eurozone countries).

Another reasons, according to it, is related to the high precariousness associated with the significant decrease in healthy life expectancy in Portugal, stating that between 2013 and 2022 decreased from 63 to 59.1 years, according to Eurostat data, while the normal age of access to reform was increasing – from 2013, rose from 65 to 66 years in 2024, to 66 years and 7 months and 7 months and 7 months 2026 should be 66 years and 9 months – «What determines that the average contributory career in 2024 in social security was only 29 years old and in the 34 -year -old CGA, much lower than necessary to be entitled to full pension (40 years of discounts) which determines lower pensions»

The reasons are not here. Eugénio Rosa also nods with the penalties that exist, contrary to what happens in the European Union, and which undergo a cut of 0.5% for each month that is missing for the age of normal access to the reform resulting from the application of the sustainability factor that, in 2025, is 16.93%. The aggravating, according to it, is the legislation that regulates the increases in the pensions of those who are not reformed. «Guarantees the maintenance of the purchasing power of pensions». And it gives examples: between 2011 and 2025, the lowest pensions (up to 2 IAS (Indexing Social Support)) lost 5.8% of purchase power, while the low averages (between 2 IAS and 3 IAS) lost 10.4% of power, the high average (between 3 IAS and 6 IAS) 12.2%, and the higher (6 IAS to 12 IAS), the loss of purchase power was 21.7%).

A situation that leads the economist to say that «It is urgent to eliminate the sustainability factor that does not exist in any other European country»like this « Changing the annual pension update law to ensure at least the maintenance of purchasing power to all pensioners and one climb of the lowest ».

According to Eugénio Rosa, « Social security has financial means to do so, without questioning its sustainability »ensuring that proof of this is the surpluses it has achieved, as well as the values ​​of the accumulated assets in the Social Security Financial Stability Fund (FEFSS).