Whether due to termination of contract, individual or collective redundancies, according to data from the INE – National Statistics Institute for last September, 313,700 people are facing a situation of unemployment. With regard to situations of unemployment, there is some support provided by Social Security. However, these supports have time limits for attribution. If at the end of this assignment remain unemployed, what can i do🇧🇷 There are some solutions assigned by Social Security. Thus, in this article, we detail one of the scenarios, namely the possibility of apply for early retirement due to long-term unemployment. It is a possibility, however, it has its conditions.
What is reform?
What we commonly call reform is the old-age pension awarded by Social Security🇧🇷 This benefit is intended to protect beneficiaries of the general Social Security regime in old age, replacing work remuneration. In order to apply for an old-age pension, you must be at least 66 years and seven months old at the time of application. This is the age that was in force during the year 2022, however, in 2023, the retirement age through the normal process will be reduced to 66 years and four monthss.However, there is the possibility of claiming retirement before reaching the normal access age🇧🇷 This occurs in special cases, such as, for example, long-term unemployment, age flexibility, very long careers and other special schemes. Also read: Why you should save for your retirement
What is considered long-term unemployment?
You are considered long-term unemployed. who has been unemployed for more than 12 months and is registered at the job center🇧🇷 This last condition is fundamental, as it conditions the possibility of granting early retirement. Recently, the term very long-term unemployed has also been defined. These are the individuals who have 45 years of age or older and have been registered with the job center for at least two years. This last term was created especially to help those over 45 years of age who are unemployed. In this age group, it can be more difficult to get a job., as employers give preference to younger people. In this way, Social Security has developed some aid, not only during unemployment, but also, so that they can return to the job market🇧🇷 If, on the other hand, the person has been unemployed for a long time and there is no prospect of being able to get a job, can apply for early retirement due to long-term unemployment🇧🇷 However, you have to fulfill some requirements. Also read: Do you receive unemployment benefits? You have duties to fulfill to keep it
Early retirement due to long-term unemployment
The fact that he has been unemployed for a long time allows him to apply for early retirement, however, must have reached one of two age groups. He can apply for retirement at age 57, if you have been unemployed since age 52 or over and have at least 22 years of discounts. Can also apply for retirement at age 62, if you have been unemployed since age 57 or more and have at least 15 years of discounts. In both situations, you can only apply for an old-age pension in advance after you have exhausted your unemployment benefit or social unemployment benefit, and if you are still unemployed. There is, however, a difference between these two situations, and this refers to the penalties in the value of the reform.In the first situation, where you can retire at age 57, iThere will be at least two penalties, one of 0.5% for each year of anticipation up to 62 years of age, as well as the sustainability factor. If the dismissal was by mutual agreement, there is also a penalty of 0.25% for each year of anticipation between the age of 62 and the normal retirement age (66 years and seven months, in 2022). It is important to mention that, as soon as you reach the normal retirement age, this penalty is eliminated.In the second, situation, where you can have access to the old-age pension at 62, if you meet all the requirements described above, you will not be penalized.
What is the sustainability factor?
understand by sustainability factor, a cut in the old-age pension aimed at penalizing early retirement🇧🇷 In 2022, the sustainability factor is 14.06%🇧🇷 The normal retirement age and the sustainability factor vary depending on the average life expectancy at age 65. For example, if there is an increase in the average life expectancy, it will consequently increase the retirement age and, in turn, the sustainability factor. The combination of these factors represents a risk for the financing of pensions and even for the sustainability of Social Security. So, the sustainability factor can, in some way, discourage the request for early pensions, in order to reduce the number of years that the State will have to pay this benefit. Also read: Pre-retirement: What does it consist of, who can access it and what benefits does it have?
What to do to get the reform?
You can apply for early retirement in two ways: in person at the Social Security services, or online through Social Security Direct. If you choose to apply in person, you must complete form Mod.RP5068-DGSS and gather all the documents mentioned. Then, you must go to the Social Security facilities, and you can do so, at most, three months before the date on which you want to start the pension. apply for early retirement through Direct Social Security🇧🇷 Before doing so, you can even simulate the calculation of the estimated gross amount you will receive. After completing the online application and, if you meet the necessary conditions, the application will be automatically approved and you will be awarded a provisional pension within a maximum period of 24 hours.To have access to the provisional pension, you must: meet the following requirements:Have pension access age15 years or more of earnings recordHave a contributory career only in Social SecurityBeen covered by the normal retirement regime, not having special careersBe resident in PortugalHave no debts to Social Security, as a self-employed worker or covered by the Voluntary Social SecurityIn this case , the old-age pension is paid by bank transfer. Therefore, you must ensure that all your details are up-to-date with Social Security Direct, especially your IBAN, email and telephone number. Read also: Retired Savings Account: what it is and what are the advantages
What are the duties and sanctions associated with the old-age pension?
Within the duties associated with the old-age pension, the main thing is to communicate any changes to the individual’s situation🇧🇷 For example, if you are a beneficiary of another type of pension, you must mention this when applying for retirement. If you are going to accumulate the pension with another benefit from another social protection scheme, you must mention it. In the same way that there are duties, there are also sanctions for not complying with them. The value of sanctions varies between €50 and €350 and, is subject to payment thereof, in the following situations:Accumulating the old-age pension resulting from the conversion of the absolute disability pension with income from work Accumulating the early old-age pension with income from work resulting from working in the same company, in the three years following the beginning of the pension Omitting or alleging false statements about the Cessation or resumption of activity, in the case of beneficiaries of an early old-age pension Omitting or alleging false statements about the receipt of another pension by applicants or old-age pensioners Giving false statements about work performed in the last 5 calendar years immediately prior to the year in which the pension began , if the beneficiary requests the pension at age 65 because he is legally prevented from continuing to provide work or activity beyond that ageRead also: Long-term unemployment: find out what it is and what benefits there are