Austerity and Hope: How Inflation Shapes Welfare for Portugal’s Seniors

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Every weekday, Maria Alice heads to the dining room, a central gathering place in Lisbon for takeaway meals. The venue, run by a social program, has become a steady lifeline for many seniors who rely on its provisions. The elderly woman has been a regular for about a year, and she notes that the recent surge in inflation has made this support feel even more essential. Prices in supermarkets have risen sharply, squeezing budgets. “I eat what they give me here every day, now for lunch, and at night I have a piece of fruit and some bread. Life is hard, and the situation is tough,” she says.

Alice is part of a larger group today: 43 people, mostly seniors, who attend the dining room operated by the organization. Rita Governo, who oversees social action, explains that even with growing demand, the current funding from the Portuguese government caps how many can be served. The numbers have continued to rise in recent months. “The end of some pandemic-era support and the ongoing price increases mean the need is persistent. It feels like a situation we saw in April 2020, only more acute,” Governo notes.

low pensions

Inflation has heightened the vulnerability of welfare recipients and retirees across Portugal, a country where more than half of pensioners live on modest incomes. The minimum pension, set by law, ranges roughly from 278 to 402 euros, depending on years of contributions, according to the latest Social Security data. Governo emphasizes that many pensions do not stretch far enough to cover rising living costs and housing rents in major cities. Alice herself reflects, “I spent more than four decades working in a household goods store, but the earnings were modest and the pension is very small. There are many people in the same boat.”

The government has rolled out various supports for the most vulnerable in an effort to cushion the crisis. Initiatives include subsidies on gas cylinders and a monthly allowance to assist with shopping. People like Carlos Jorge, who attends the A Voz de Operário dining hall, call these measures helpful but temporary. “The money helps, even if briefly. I used to borrow small sums from neighbors to get by. Now I can manage without asking and that relief makes a difference,” he explains.

insufficient support

Still, experts and social organizations warn that these measures do not offer a long-term solution. Elizabeth Jonet, speaking on behalf of the Portuguese Federation of Food Banks, contends that the real fix lies in raising wages and pensions—areas where Portugal lags behind many peers in the European Union. “People in real need endure such hardship that any aid is valuable, but temporary relief does not alter their broader situation. About one in every Portugal nineteen people faces a risk of poverty. This is a structural problem that worsens during crises,” she asserts.

Despite protests from unions and social groups, the government has resisted substantial salary increases for civil servants, maintaining a 0.9% rise at the start of the year. Proposals to improve pensions, even with a modest boost, have not been adopted. Jonet warns that without meaningful changes, more families will slip into vulnerability as prices continue to rise. She remains hopeful, however, that the overall demand for food aid will not collapse. “Everyone knows a family that is faring worse today than before. People live day by day, facing a steeper cost of living. Yet we saw almost no drop in food collections during the last campaign in May, which gives some reassurance,” she notes, reflecting a persistent reliance on community support as a bridge during hard times (Source attribution: Governo and social organizations).

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