Social Old Age Pension
Pensão social de velhice
Coverage
- Elderly persons who have reached the standard statutory retirement age, who fulfil the requirements for residence and citizenship, and who cannot sufficiently cover their subsistence from income.
Financing
- The scheme is part of the subsystem of solidarity (social aid or assistance) which is entirely tax-financed through transfers from the state budget (Orçamento do Estado) and by the earmarking (consignação) of tax revenues.
Administration
- The ‘Institute of Social Security’ (Instituto da Segurança Social, I.P.) manages the scheme; the payment of the benefits is managed by one of its services, i.e. the ‘National Pensions Centre’ (Centro Nacional de Pensões).
- The ‘Institute of Financial Management of Social Security’ (Instituto de Gestão Financeira da Segurança Social, I.P.) is in charge of the management of financial resources.
Qualifying Conditions
- Persons must have reached the standard statutory retirement age.
- Persons must reside in Portugal.
- Persons must hold citizenship of one of the following countries: Portugal, the European Union Member States, Iceland Liechtenstein, Norway, Switzerland, Australia, Brazil, Canada, Cape Verde.
- Persons must not be eligible/do not qualify for any contributory old age pension or receive old age/survivor’s pension benefits from a contributory scheme that fall below the social pension amount.
- Benefits are means-tested: persons with a monthly income of less than 40% (for singles; EUR 175.52) or 60% (for couples; EUR 263.29) of the Social Support Index (Indexante de Apoios Sociais, IAS); IAS in 2020 is EUR 438.81.1 The means testing is based on income (e.g. from pensions, work or real estate). A percentage of the value of assets is also considered.
- Benefits can be combined with other social benefits, such as the solidarity supplement for the elderly (CSI).
- Benefits cannot be combined with old age pension benefits from the general social security scheme. Pension benefits of the general social security scheme cannot fall below the social pension level due to the social complement.
Benefits
- Fixed flat-rate monthly benefit (EUR 219.79 in 2020).
- Benefits are granted for 14 calendar months per year.
- The benefit is adjusted yearly following adjustments of the Social Support Index (IAS).
- Persons who receive the social old age pension are also automatically entitled to the extraordinary solidarity supplement (complemento extraordinário de solidariedade, CES) which is a flat-rate monthly top-up to the social old age pension. In 2020, the supplement is EUR 18.44 (for persons below the age of 70) and EUR 36.86 (for persons aged 70 and older) per month.
- Persons may also be entitled to other social benefits (such as social tariffs for electricity and natural gas).
- Benefits are not subject to income tax (taxable income must exceed the minimum level of subsistence/1.5 IAS x 14).
Coverage
Financing
Administration
Qualifying Conditions
Benefits
- Elderly persons who have reached the standard statutory retirement age, who fulfil the requirements for residence and citizenship, and who cannot sufficiently cover their subsistence from income.
- The scheme is part of the subsystem of solidarity (social aid or assistance) which is entirely tax-financed through transfers from the state budget (Orçamento do Estado) and by the earmarking (consignação) of tax revenues.
- The ‘Institute of Social Security’ (Instituto da Segurança Social, I.P.) manages the scheme; the payment of the benefits is managed by one of its services, i.e. the ‘National Pensions Centre’ (Centro Nacional de Pensões).
- The ‘Institute of Financial Management of Social Security’ (Instituto de Gestão Financeira da Segurança Social, I.P.) is in charge of the management of financial resources.
- Persons must have reached the standard statutory retirement age.
- Persons must reside in Portugal.
- Persons must hold citizenship of one of the following countries: Portugal, the European Union Member States, Iceland Liechtenstein, Norway, Switzerland, Australia, Brazil, Canada, Cape Verde.
- Persons must not be eligible/do not qualify for any contributory old age pension or receive old age/survivor’s pension benefits from a contributory scheme that fall below the social pension amount.
- Benefits are means-tested: persons with a monthly income of less than 40% (for singles; EUR 175.52) or 60% (for couples; EUR 263.29) of the Social Support Index (Indexante de Apoios Sociais, IAS); IAS in 2020 is EUR 438.81.1 The means testing is based on income (e.g. from pensions, work or real estate). A percentage of the value of assets is also considered.
- Benefits can be combined with other social benefits, such as the solidarity supplement for the elderly (CSI).
- Benefits cannot be combined with old age pension benefits from the general social security scheme. Pension benefits of the general social security scheme cannot fall below the social pension level due to the social complement.
- Fixed flat-rate monthly benefit (EUR 219.79 in 2020).
- Benefits are granted for 14 calendar months per year.
- The benefit is adjusted yearly following adjustments of the Social Support Index (IAS).
- Persons who receive the social old age pension are also automatically entitled to the extraordinary solidarity supplement (complemento extraordinário de solidariedade, CES) which is a flat-rate monthly top-up to the social old age pension. In 2020, the supplement is EUR 18.44 (for persons below the age of 70) and EUR 36.86 (for persons aged 70 and older) per month.
- Persons may also be entitled to other social benefits (such as social tariffs for electricity and natural gas).
- Benefits are not subject to income tax (taxable income must exceed the minimum level of subsistence/1.5 IAS x 14).
