Father’s Day: the challenge of pensions in Portugal – a call for national responsibility

On Father’s Day, a date dedicated to celebrating the father figure and recognizing his role in society, it is imperative to reflect on a social scourge that threatens to compromise the future of future generations: the state of pensions in Portugal.

The grim projections outlined by the European Commission are alarming and cannot be ignored. Until 2070, it is estimated that pensions in Portugal will be increasingly low, reaching just 41% of the last salary for those who retire in five decades. This scenario represents a very significant cut in relation to what is currently observed, putting financial stability at risk and jeopardizing the well-being of pensioners.

The current situation is the result of a combination of worrying factors. The low productivity of the Portuguese economy, the insufficient birth rate and demographic aging are elements that contribute to the imminent crisis in the pension system. The rising average life expectancy, although positive in individual terms, further worsens the financial imbalance of Social Security.

In a context in which internal political divisions are reaching alarming levels, it is crucial that political parties reverse this situation on behalf of the country. The well-being of the Portuguese requires a union of efforts around national goals aimed at the sustainability of the pension system. Stimulating labor productivity and wealth creation, encouraging birth rates and implementing immigration integration policies are essential measures to reverse the bleak scenario that lies ahead.

The lack of political consensus and disagreement between employers’ confederations reveal the complexity of the situation. While political parties make promises, the “empty” proposed solutions diverge and do not offer the structural answers that the problem demands.

The proposal for taxation on company profits, defended by the Confederation of Commerce and Services of Portugal, faces resistance from the Portuguese Business Confederation, which fears the negative impact on capital-intensive investment in Portugal. This dispute reveals the urgent need to find a balance between financial sustainability and stimulating economic activity.

Portugal faces a decisive moment, in which responsibility and unity around national goals are imperative to face the challenges that lie ahead. The posture of maximum discernment that the situation demands requires the assumption of commitments that go beyond the time span of a legislature.

It is essential to recognize, with a sense of humanism, that the pension crisis does not only affect today’s elderly, but compromises the future of new generations. Without coordinated and structuring intervention, today’s political decision-makers will be condemning our children and grandchildren to a future of uncertainty and financial precariousness.