Portugal's Pension Boost: €400 Million Support for 2.4 Million Retirees This October
Público11 months ago
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Portugal's Pension Boost: €400 Million Support for 2.4 Million Retirees This October

Economy
pensions
portugal
government
economy
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Summary:

  • Extraordinary supplement for pensioners costs around €400 million.

  • Support will reach approximately 2.4 million pensioners.

  • Payments range from €100 to €200 based on pension amounts.

  • Criticism from retiree associations for focusing on one-time payments.

  • Political backlash, with claims of electoral motives for the measure.

Extraordinary Pension Supplement

The extraordinary supplement that the government plans to pay to pensioners this October is estimated to cost around €400 million or possibly slightly more. This announcement was made by Paulo Rangel, the acting Prime Minister and Minister of Foreign Affairs, during remarks broadcasted by RTP3. It is projected that the support will reach approximately 2.4 million individuals.

Breakdown of the Supplement

The payment will vary based on pension amounts:

  • €200 for pensions up to €509.26
  • €150 for pensions between €509.27 and €1,018.52
  • €100 for pensions up to €1,527.78

This one-time support will not be added to the overall pension amount, leading to criticism from retiree associations. They argue that the response to low pensions should focus on annual increases and ensuring that no one falls below the poverty line.

Political Reactions

Pedro Nuno Santos, the Secretary-General of the Socialist Party (PS), labeled the measure as “electoralist.” In contrast, Paulo Rangel defended the initiative, emphasizing its importance and criticizing the opposition's discontent with this social measure that demonstrates budgetary responsibility.

Discrepancies in Beneficiary Numbers

The figures presented by the minister regarding potential beneficiaries exceed the number of pensions categorized within the relevant tiers in both the National Pension Center (approximately 2 million in 2022) and the General Retirement Fund (280,000 pensions under €1,500 in 2023). Additionally, many individuals receive more than one pension (e.g., retirement and survivor benefits).

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