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Portugal is a popular place to retire. It's mild climate, beautiful coastline and relatively low cost of living make it a pensioner's paradise.

The old age pension is a monthly cash benefit designed to protect the insured persons covered by the social security general scheme when they reach the minimum age legally presumed to be the suitable age to stop carrying on an occupational activity. To qualify for  pensions, the individual has to be above 65 years of age and have a minimum of 15 continuous or non-continuous years of earnings registration. The person is also eligible to claim old age pension before reaching 65 years of age is he/she has reached 55 years of age and clocked a minimum of 30 years of earnings. The pension calculation is based on the insurance periods completed by the person concerned.

The taxation of pensions originating in member EU states and elsewhere abroad varies according to the type of pension and applicable Double Tax Treaties. Those eligible for a foreign pension may receive it under bilateral agreements and still be eligible for a Portuguese pension. Its pension system for seniors however is not the best.

The Portugese Pension Fund has been receiving a lot of calls for reform in recent years. For more detailed information, click here.