Early reforms provide a 13.8% cut in 2023, by applying the sustainability factor. Still, this is an easing of the fine that stands at 14.06% this year, according to preliminary INE (National Institute of Statistics) estimates released this Tuesday. Another conclusion is that the statutory retirement age will remain at 66 years and 4 months in 2024, as in 2023, a drop of three months from the current 66 years and 7 months.
The average life expectancy at age 65 in the period 2020-2022 was 19.30 years, a decrease of 0.05 years compared to the period between 2019 and 2021 (19.35 years), according to INE. It is this indicator, which has yet to be confirmed, that forms the basis for the calculation of both the statutory retirement age and the penalty for early retirement.
In the INE analysis, the average life expectancy at age 65 fell for the second consecutive three-year period due to the increase in mortality due to the pandemic. However, the decline was not as sharp as expected, due to the improved evolution of covid-19.
In addition to the sustainability factor, the discount of 0.5% on the pension per month of early retirement relative to the legal age must be taken into account.
The sustainability factor in 2021 reduced the value of early renovations by 15.5%. This year, that value fell to 14.06%, a decrease of 1.44 percentage points. It was the first retreat since the sustainability factor was created in 2008.
Still, the sustainability factor is far from the values of 2013, when it was 4.78%. From that year onwards and due to the imposition of the troika, the calculation formula changed and the average life expectancy in 2000 was used as a reference and not in 2006 as before, with a sharp increase in the following year to 12.34%.
The sustainability factor is the result of the ratio between the average life expectancy at age 65 in 2000, which was 16.63 years, and the average life expectancy in the year before retirement, in this case 19.30 years. , if the employee asks for early retirement in 2023.
Which escapes the cut because of the durability factor
However, there are situations where the sustainability factor does not apply. Early retirement is saved by the scheme of very long contributory careers, ie for persons aged 60 and over with a career of at least 48 years; or, 60 years or older and at least 46 years of contributing career, started making contributions to Social Security or Caixa Geral de Aposentação (CGA) before the age of 17. In addition, the reduced sentence does not apply to anyone who is at least 60 years old and 40 year or more discount.
The sustainability factor does not apply to the conversion of a disability pension into a retirement pension either. That is, when someone who has retired due to disability reaches the normal age for access to the current pension.
According to Legislative Decree 70/2020 of September 16, employees in professions that are considered to be subject to rapid wear and tear can also apply for early retirement without penalty.
Source: DN
