Pensions will be updated in 2024 according to law that takes inflation and economic growth into account, and most of the rules for those wanting to retire will remain the same, including the legal age requirement.
The update of the pensions paid by Social Security and Caixa Geral de Aposentações (CGA) for 2024 was published in Diário da República on December 11, with values slightly lower than those announced in October by the government, as inflation used in the calculation, however, fell back.
The majority of retirees will see an increase of 6%, compared to the government’s forecast inflation of 2.9% for 2024.
The 2024 update has as indicators an average growth in gross domestic product (GDP) of 5.18% over the past two years and the average variation of the past twelve months in the consumer price index (IPC), excluding housing, available in November , 5%.
Here are some key points about pensions in 2024:
In 2024, pensions will be updated, taking into account the calculation formula provided for by law, taking into account inflation and GDP growth, resulting in an increase of 6% for the pensions with the lowest value and 5% for the pensions with the highest value. a regulation published in December. These increases are slightly lower than those announced by the government in October (between 5.2% and 6.2%).
For example, pensions worth a maximum of two Social Support Indexes (IAS), i.e. a maximum of 1,018.52 euros, will be updated by 6%.
Pensions between two and six IAS (between 1,018.52 euros and 3,055.56 euros) will increase by 5.65%.
Pensions between six and twelve IAS (between 3,055.56 euros and 6,111.12 euros) will increase by 5%, while the rest will be frozen.
The IAS increases by 6%, from 480.43 euros in 2023 to 509.26 euros in 2024.
The increase in the value of the IAS will also be reflected in an increase in various social benefits, including the limits of family benefits and the limits (minimum and maximum) of unemployment benefits.
The statutory retirement age will remain unchanged in 2024, at 66 years and four months – still reflecting the decline in average life expectancy associated with mortality due to the Covid-19 pandemic.
However, the following year, in 2025, the statutory retirement age will increase by three months to 66 years and seven months, due to the increase in average life expectancy.
For the pension request in 2024, the required legal age or the concept of the ‘personal age’ for access is relevant, which results from the reduction, compared to the legal age, of four months for each year of contributions above 40 years. career..
For example, if someone has a deduction of 43 years, he can deduct 12 months from the normal retirement age.
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 the age of 66 years and four months in 2024 (or before the ‘personal retirement age’) will receive a 15.8% discount on the value of their pension.
This reduction due to the sustainability factor does not apply to very long careers and to those who have had at least 40 years of career at the age of 60.
In the event of early retirement, a reduction of 0.5% is applied each month in advance compared to the statutory retirement age (66 years and four months in 2024) or compared to the “personal retirement age”.
For example, someone who decides to retire at age 63, with a 44-year reduction, because he still has four years of reduction after age 40, has a personal retirement age of 65 (instead of 66 years and four months). In this case, you will not receive the discount due to the sustainability factor (15.8% in 2024), but you will receive a penalty of 0.5% per month in advance compared to the age of 65, i.e. a discount of 12 year. %.
Source: DN
