Looking to retire before reaching the official retirement age in Portugal? As of 2025, the retirement age is set at 66 years and 7 months. One possible option is considering pre-retirement.
The concept of pre-retirement involves the reduction or suspension of work duties for employees aged 55 or older, while still granting them financial compensation from their employer, as outlined by the Authority for Working Conditions (ACT).
In practical terms, pre-retirement is based on a written agreement between employer and employee, specifying the start date, the amount of compensation, and the work period involved, should there only be a reduction in work.
According to ACT, the pre-retirement compensation cannot exceed the worker’s salary at the time of the agreement and must not be less than 25% of that amount. It is typically updated annually and retains the same protections as regular wages.
During this period, employees are allowed to engage in other paid activities.
What are the worker’s rights if the employer fails to pay the pre-retirement compensation or delays payment for over 30 days?
A worker is entitled, in instances of negligent non-payment or delays longer than 30 days, to resume work under normal conditions or terminate the contract and receive compensation. If a contract is terminated, the compensation equals the pre-retirement payments up to the legal old-age retirement age.
When does pre-retirement end?
According to ACT, pre-retirement concludes:
- Upon the employee’s retirement due to disability or old age;
- Or when resuming normal work activity (by agreement with the employer or due to non-payment of the pre-retirement compensation);
- Or with the termination of the contract.
Early retirement can be another option
The law also outlines certain conditions under which early retirement is possible. As stated on the Caixa Geral de Depósitos’ Saldo Positivo website, options include:
- Being 60 or older and having paid into the system for at least 40 years (flexible age regime);
- Being 60 or older and having paid in for at least 48 years or having paid in 46 years if work began before age 17 (very long contributory careers regime);
- Experiencing long-term involuntary unemployment;
- Having an occupation considered burdensome (e.g., miners, professional fishermen, air traffic controllers);
- Having a disability with an associated incapacity level of 80% or more;
- Being covered by specific protection measures.
Additionally, as per the public service portal gov.pt, there is a social old-age pension available for those who have not paid enough into Social Security and have low incomes.
