Are you a pensioner or retired? 2025 brings significant updates to pension adjustments in Portugal. A new rule, published in the Portuguese official gazette, introduces a faster adjustment mechanism for pensions, benefitting those who retired in 2024. Learn more about these changes and how they could impact your income.
What changes in pension updates?
Until now, pensions granted by both the Social Security System and the Caixa Geral de Aposentações (CGA) were not updated in the year immediately following their assignment.
This delay, criticised by groups such as the Justice for Pensioners and Retirees Movement (MJPR), created financial challenges for many pensioners.
To address this, the Government has implemented a new rule which includes:
- Immediate annual updates: Pensions granted in the previous year will now be updated from 1 January of the following year, based on economic growth and inflation rates.
- Applicability from 1 January 2025: All pensioners who retired in 2024 will see their pensions updated in 2025.
How much will pensions increase in 2025?
Based on economic indicators and the Index of Social Support (IAS) value of €522.5, the 2025 pension increases are as follows:
- 2.6% for pensions up to €1,045 (twice the IAS).
- 2.1% for pensions between €1,045 and €3,135 (two to six times the IAS).
- 1.85% for pensions between €3,135 and €6,270 (up to 12 times the IAS).
Additionally, an extra 1.25 percentage points increase will apply to pensions up to €1,565.5 (three times the IAS), as approved in the 2025 State Budget.
What does this mean for pensioners?
This new rule represents an important step towards ensuring greater fairness in the pension system, especially during a period of rising inflation and increasing living costs.
If you have questions about how these changes may affect your pension or need legal support to understand your rights, the Reis & Pellicano team is here to help.
