In 2027, the retirement age will increase again to 66 years and 11 months. This was confirmed by a decree published in the Official Gazette today, which aligns with previous calculations by ECO based on life expectancy data from the National Institute for Statistics (INE). Additionally, the reduction rate for early retirees will become worse, reaching 17.63% starting January.
Legally, the retirement age is linked to a life expectancy of 65 years. The INE revealed a provisional life expectancy figure of 20.19 years for the years 2023 to 2025, which is slightly longer than the previous record by 0.17 years.
Using this information, ECO has calculated the normal retirement age for 2027 as 66 years and 11 months, a point also noted in government legislation. It states, “The normal retirement age under the general social security system in 2027 will be 66 years and 11 months.”
Before 2013, the retirement age was set at 65 years. It increased to 66 in 2014, which has corresponded with a rise in life expectancy at 65. Notably, the retirement age stayed at 66 years and 5 months from 2019 to 2020 due to slight increases in life expectancy.
However, following higher mortality rates due to the coronavirus pandemic, the retirement age was adjusted down to 66 years and 4 months in 2023. It stabilized at that level in 2024 but then rose to 66 years and 7 months in 2025. According to ECO, it will increase to 66 years and 9 months in 2026.
Pensioners with over 40 years of contributions can opt for an “individual retirement age.” This means they receive a four-month reduction from their normal retirement age for each additional year contributed after 40, allowing some to retire before 65 without penalties.
Regarding early retirement, the decree released today confirms that those opting for it next year will experience a 17.63% reduction, which ECO had already anticipated.
The Social Security factor is calculated by law based on the life expectancy at 65 in 2000 (16.63 years) compared to the life expectancy in 2025 for individuals retiring the year before they officially retire, which is next year.
Those looking forward to retirement won’t just face this reduction. Most early pensions involve a 0.5% penalty for each month taken early compared to the statutory retirement age.
However, some individuals can avoid these penalties. For instance, a Portuguese citizen with 48 years of contributions who wants to retire early at 60, or another with 46 years of contributions who started working at 16 or younger, can bypass these cuts. The same exemption applies to those in particularly demanding jobs.
