OECD Reviews of Pension Systems: Portugal

Foreword
Executive summary
Chapter 1.  Introduction to the Review of the Portuguese pension system
	1.1. OECD Reviews of Pension Systems
	1.2. Why review the Portuguese pension system now?
	1.3. Economic and demographic background
		1.3.1. Recent economic context
		1.3.2. Labour market
		1.3.3. Demographics
	Note
	References
Chapter 2.  First layer of social protection in old age
	2.1. Introduction
	2.2. Old-age poverty and inequality
		2.2.1. Relative old-age poverty in Portugal is slightly lower than the OECD average
		2.2.2. Old-age inequality is high in Portugal
	2.3. Coverage gaps and low earnings
		2.3.1. Coverage gaps
		2.3.2. Low earnings
	2.4. Minimum pension
		2.4.1. Indexation of minimum pensions
		2.4.2. Minimum pension levels and earnings-related entitlements
	2.5. Old-age safety net
		2.5.1. Old-age social pension
		2.5.2. Solidarity Supplement for the Elderly (CSI)
	2.6. Interactions between first-tier pension elements
	2.7. Policy options
		Key recommendations
	Notes
	References
Chapter 3.  Earnings-related mandatory pensions
	3.1. Introduction
	3.2. Recent changes in the Portuguese pension landscape
		3.2.1. Population ageing
		3.2.2. Main reforms before the financial crisis
		3.2.3. Main reforms during and after the financial crisis
		3.2.4. Future expenditures
	3.3. Current outcomes of the pension system
		3.3.1. Contributions
		3.3.2. Benefit levels
		3.3.3. Inequality
	3.4. The current general earnings-related pension scheme
		3.4.1. Accrual phase in the general scheme
			Reference wage
			Accrual
		3.4.2. Retirement phase
			Eligibility
			Retirement age
			Indexation
			Gross replacement rates
			Net replacement rates
		3.4.3. Early and late retirement
			Rules for early retirement
			Rules for late retirement
	3.5. Other pension schemes
		3.5.1. Survivor pensions
		3.5.2. Civil servants
		3.5.3. Special regimes
	3.6. Policy options
		Key recommendations
	Notes
	References
		Annex 3.A. Extraordinary solidarity contribution
Chapter 4.  Voluntary funded pension arrangements
	4.1. Introduction
	4.2. Structure of the funded pension system
		4.2.1. Public scheme
		4.2.2. Private schemes
	4.3. Coverage and contributions
		4.3.1. Voluntary funded public scheme
		4.3.2. Voluntary funded private schemes
			Occupational pension plans
			Personal pension plans
	4.4. Tax treatment of pension savings
		4.4.1. Contributions
		4.4.2. Investment returns
		4.4.3. Benefits
		4.4.4. Tax advantage
	4.5. Assets and investment
		4.5.1. Assets under management
		4.5.2. Asset allocation
		4.5.3. Investment performance
	4.6. Solvency and funding requirements
		4.6.1. At the management entity level
		4.6.2. At the fund level
	4.7. Pay-out phase
		4.7.1. Public scheme
		4.7.2. Private personal pension plans
		4.7.3. Private occupational pension plans
	4.8. Competition
		4.8.1. Market structure
		4.8.2. Fees, costs and margins
		4.8.3. Member engagement
		4.8.4. Financial advice
		4.8.5. Plans’ communication structure
		4.8.6. Financial knowledge of members
	4.9. Policy options to improve Portugal’s voluntary funded pension system
		4.9.1. Improving incentives to contribute to voluntary pension schemes
		4.9.2. Changing withdrawal settings to improve retirement incomes
		4.9.3. Supporting growth in occupational pension plans;
		4.9.4. Improving regulation
		4.9.5. Raising awareness of the system
			Key recommendations
	Notes
	References
Chapter 5.  Labour market developments and pensions
	5.1. Introduction
	5.2. Career length, career interruptions and pensions
		5.2.1. Short careers are uncommon among older workers, but risks have grown
		5.2.2. Impact of career breaks on pensions
	5.3. Pathways into retirement
		5.3.1. Standard early retirement
		5.3.2. Unemployment-related early retirement
		5.3.3. Disability-to-retirement transition
		5.3.4. Retirement entry after unemployment, disability and inactivity
	5.4. Non-standard employment and pensions
		5.4.1. Self-employment rates have fallen in Portugal, but remain above-average
		5.4.2. Many workers are on temporary contracts
		5.4.3. Part-time work is infrequent, but has been rising among the young
		5.4.4. Informal economy workers are excluded from the social security system
	5.5. Automation and digitalisation will contribute to shaping future labour markets
		5.5.1. Automation and digitalisation in Portugal
		5.5.2. Changing labour markets raise questions for old-age protection systems
	5.6. Policy options
		Key recommendations
	Notes
	References