Portugal’s statutory retirement age will increase once more in 2027, reaching 66 years and 11 months, according to a decree published on Monday in the
Official Gazette. The measure confirms calculations previously made by ECO, based on updated life expectancy data from the National Statistics Institute (INE).
The decree also confirms that the sustainability factor applied to early retirements will worsen in 2026, rising to a 17.63% cut as of January.
Under Portuguese law, the normal retirement age is adjusted in line with gains in average life expectancy at age 65. In late November, INE released provisional figures for the 2023–2025 period, showing an average life expectancy of 20.19 years—an increase of 0.17 years compared with the previous three-year period.
Based on these figures, ECO calculated that the retirement age in 2027 would rise to 66 years and 11 months, a forecast now confirmed by the government decree. “The normal retirement age under the general Social Security scheme in 2027 is 66 years and 11 months,” the document states.
A gradual rise, with one pandemic exception
Until 2013, Portugal’s retirement age was fixed at 65. In 2014, it rose to 66 and was subsequently linked to changes in life expectancy at age 65.
In some years, the adjustment has been minimal. Between 2019 and 2020, for example, the retirement age remained unchanged at 66 years and five months due to only marginal gains in life expectancy.
However, the mortality impact of the Covid-19 pandemic led to an unprecedented reversal. In 2023, the retirement age fell to 66 years and four months, where it remained in 2024. It rose again to 66 years and seven months in 2025 and is set to reach 66 years and nine months in 2026.
Exceptions for long careers
Workers with more than 40 years of contributions may benefit from a so-called “personal retirement age.” Under this mechanism, the statutory retirement age is reduced by four months for each year of contributions beyond 40, making it possible in some cases to retire before 65 without penalties.
Early retirement penalties confirmed
The decree also confirms that early retirement pensions granted in 2026 will be subject to a 17.63% reduction due to the social security sustainability factor.
By law, this factor is calculated based on the ratio between average life expectancy at age 65 in 2000 (16.63 years) and life expectancy in the year preceding retirement—in this case, 2025.
In most situations, early retirees face an additional penalty of 0.5% for each month of retirement taken before the legal retirement age.
However, several groups are exempt from these cuts. These include workers who retire at age 60 with at least 48 years of contributions, or those who retire at 60 with 46 years of contributions provided they began working at age 16 or earlier. Workers in professions classified as involving rapid wear and tear are also excluded from these penalties. Photo by Andreas Lehner, Wikimedia commons.