The majority of Portuguese individuals aged 50 and above are not collecting pensions, with fewer than 40% receiving them.
In the European Union, the distribution of old-age and disability pensions amongst individuals aged 50 to 74 varies considerably between member states. According to Eurostat data, Poland stands out with more than 55% of people in this age group receiving either old-age or disability pensions. On the other hand, Spain and Portugal present lower percentages, barely surpassing and falling below 30% and 40%, respectively.
The statistics office reports that in 2023, 45.1% of EU residents aged 50 to 74 received pensions. Specifically, 39.7% received old-age pensions, while 4.6% were awarded disability pensions or another type of incapacity benefit. Between the ages of 50 and 59, disability pensions were predominant. Yet, as individuals aged, old-age pensions quickly became the most common, accounting for 97.2% of men and 89.5% of women aged 70 to 74 in the EU.
This disparity in pension coverage among countries within the EU is influenced by various factors, including the development of supplementary pensions, such as occupational pensions, and overall economic conditions. European pension funds manage approximately $4.9 trillion and are being encouraged to invest more in the real economy to foster economic growth.
The income of older individuals remains below 60% of working-age income, on average, with significant differences between countries. Greater focus on cultivating supplementary pensions and addressing regulatory barriers to investments in equity and alternative asset classes may impact these figures in the future.
In summary, while Poland presents a relatively high percentage of pension recipients among individuals aged 50 to 74, countries such as Spain and Portugal have lower percentages, showcasing varied pension systems and coverage levels across European countries.
In Portugal, the focus on supplementary pensions and wealth-management could potentially increase the percentage of individuals aged 50 to 74 receiving pensions, aligning with the trend observed in other European countries. A substantial boost in personal-finance strategies, coupled with investments in the real economy by European pension funds, might be instrumental in bridging the income divide between older and working-age individuals within the EU.
