In recent years, Portugal has implemented numerous (temporary and permanent) parametric
pension reforms aimed at reducing public pension expenditures, with little margin for addressing
income adequacy concerns in an already highly aged society. The main policy initiatives were
driven by the short-term need for scal consolidation rather than by a long-term prospect for the
design of pension systems.
We porpose to evaluate the effects of recent reforms of the pension system and to show the future challenges for the system given the dramatic demographic change that Portugal will face in the next decades.