Pensions are being updated in 2024 under a law that takes inflation and economic growth into account, and most rules for those wishing to retire will remain the same, including the legal age.
Updated information on pensions paid by Social Security and the Caixa Geral de Aposentações (CGA) for 2024 was published on December 11 in Diário da República, with values slightly lower than those announced by the government in October since inflation was used in the calculation. however, he retreated.
For most pensioners, the increase will be 6%, with the government’s inflation forecast of 2.9% for 2024.
The 2024 update uses the average gross domestic product (GDP) growth of 5.18% over the past two years and the average change over the past 12 months in the consumer price index (IPC), excluding housing available in November, as indicators. , 5%.
Some important points about pensions in 2024:
Pension update
In 2024, pensions are updated using a statutory calculation formula that takes into account inflation and GDP growth, resulting in increases of 6% for pensions with the lowest value and 5% for pensions with the highest value. ruling published in December. This increase is slightly lower than the government announced in October (5.2% to 6.2%).
Thus, pensions worth up to two indexes of social assistance (IAS), i.e. up to 1018.52 euros, will be updated by 6%.
Pensions between two and six IFRS (from 1018.52 euros to 3055.56 euros) will increase by 5.65%.
Pensions from 6 to 12 IAS (from 3055.56 to 6111.12 euros) will increase by 5%, and the remainder will be frozen.
Index of Social Support (IAS)
IAS increases by 6%, from €480.43 in 2023 to €509.26 in 2024.
The increase in the cost of IAS will also be reflected in increases in a number of social benefits, including family benefit limits and unemployment benefit limits (minimum and maximum).
Retirement age is 66 years and four months.
The legal retirement age will remain unchanged in 2024 at 66 years and four months – still due to the decline in life expectancy associated with deaths due to the Covid-19 pandemic.
However, next year, 2025, the legal retirement age will increase by three months, to 66 years and seven months, due to rising life expectancy.
For applications for retirement in 2024, the required legal age or the concept of “personal age” of access is relevant, which results from a reduction from legal age of four months for each year of contributions over 40 years. career. .
For example, if a person has 43 years of contributions, they can subtract 12 months from their normal retirement age.
Resilience Factor
The sustainability factor applied to some early pensions will result in a reduction of 15.8% in 2024, up from 13.8% in 2023.
In other words, anyone who retires before reaching age 66 years and four months in 2024 (or “personal retirement age”) will see their pension amount reduced by 15.8%.
This reduction due to the sustainability factor does not apply in the case of very long careers and for those who, at the age of 60, have had at least 40 years of working experience.
Penalty 0.5% for each month in advance
Early retirement is subject to a reduction of 0.5% for each month forward of the statutory retirement age (66 years and four months in 2024) or of the “personal pension age”.
For example, a person who chooses to retire at age 63 with 44 years of discounts because he has four more years of discounts after age 40 has a personal retirement age of 65 (instead of 66 years and four months). In this case, you will not incur a reduction due to the sustainability factor (15.8% in 2024), but you will have a penalty of 0.5% for each month forward over age 65, i.e. a 12% reduction .
Author: Lusa
Source: CM Jornal

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