January 2020

24Jan

OECD Reviews of Pension Systems: Portugal

By OECD This review provides policy recommendations on how to improve the Portuguese pension system, building on the OECD’s best practices in pension design. It details the Portuguese pension system and identifies its strengths and weaknesses based on cross-country comparisons. The Portuguese pension system consists of an old-age safety net, a pay-as-you-go defined benefit scheme and voluntary private savings. The safety net includes an old-age social pension and a complement (the so-called Complemento Solidário para Idosos or CSI), both...

January 24, 2020
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June 2019

27Jun

Portugal. Social security grants 26,000 early-retirement pensions

Very long contributive careers – of people who began working while still very young – accounted for more than half of the total early retirements being approved in 2018, with 26,389 pensions being granted, according to data unveiled by the minister, José Vieira da Silva, at a regular hearing of parliament’s committee on employment and social security. This year, the normal retirement age is 66 years and five months; at a lower age, early retirement may be requested for...

June 27, 2019
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May 2019

17May

Selfies for Portugal- An innovative Pan European Retirement Solution

By Robert C. Merton, Arun Muralidhar, Rui Seybert P Ferreira With a rapidly aging population, Portugal faces some serious pension challenges including a Social Security system which is under pressure, and pension benefits gradually approaching levels that will require individuals to supplement Social Security with private savings. In addition, Portugal has a low rate of financial literacy and hence transferring the responsibility of retirement planning to the general population runs a major risk of many individuals retiring poor. While some...

May 17, 2019
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March 2019

21Mar

Portugal’s pension system needs to prepare for rapid population ageing

Portugal needs to reform its pensions system to address the challenges of a fast-shrinking workforce and high levels of old-age inequality, according to a new OECD report. The OECD Reviews of Pension Systems: Portugal says the country’s rapidly ageing population, a result of low fertility and rising life expectancy, is putting pressure on pension finances. The total population recently started to shrink and is projected to fall below 9 million by 2050 from a peak of 10.7 million in...

March 21, 2019
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February 2019

28Feb

Portugal. State paid out millions to deceased pensioners

News reports this morning have revealed social security services have paid out millions of euros to deceased pensioners. According to an internal audit conducted by the Accounts Tribunal, 3.7 million euros were paid out in 2016 to 2017, and in some cases, payments were made for ten years after a recipient’s death. Recovering the cash from family members who pocketed the payments has not proven easy, with only around 600,000 euros recouped by the state to date. Read more...

February 28, 2019
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December 2017

22Dec

Spain. CaixaBank Buys Banco BPI’s Card Business

Portugal's Banco BPI S/A (BPI.LB) will sell its card and point-of-sale activities to entities associated with CaixaBank SA (CABK.MC) for a total of 113 million euros ($134.1 million), the two banks said Thursday. CaixaBank SA (CABK.MC) holds a controlling stake in Banco BPI. CaixaBank Payments E.P., a wholly-owned subsidiary of CaixaBank, will acquire Banco BPI's credit and debit card-emitting activities for EUR53 million. At the same time, Comercia Global Payments E.P., a joint venture between CaixaBank and Global Payments Inc., will acquire...

December 22, 2017
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September 2017

18Sep

Portugal. Government wants to squeeze foreign pensioners too

Portugal’s finance minister, Mário Centeno, acknowledged on Friday that the government has been looking into introducing a minimum income tax bracket for foreign pensioners for some months, to ensure a “good tax relationship” with other European countries. Following an informal meeting of euro zones finance ministers in Talin, when he was asked about an article in Friday's edition of business newspaper Jornal de Negócios saying the government was studying changes to the income tax rules for non-habitual residents because of...

September 18, 2017
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March 2017