In 2024 a fresh framework for pensions took effect, introducing a new payment system and a clear aim: ensure every retiree has enough purchasing power to sustain themselves over time. The change is part of a long-term plan that stretches across several years, with gradual steps designed to strengthen the pension system while keeping benefits financially viable.
The plan envisions pension payments rising steadily, with projections showing an increase of up to 70 percent above current levels by the end of the period. Alongside this uplift, the new law adjusts several existing provisions, including the retirement age, which will shift based on length of contribution. For individuals who have accumulated 38 years of contributions, the target retirement age will be 65, rising to 66 years and 6 months under certain conditions. These adjustments prioritize the fund’s long-term health while aiming to preserve predictable benefits for workers who plan ahead.
Another notable element is the possibility of early retirement for those who reach advanced ages under specific criteria. Early retirement remains a topic in the 2024 plan, but it now comes with particular considerations tied to current employment realities and the broader fiscal framework. The new rules are designed to balance immediate needs with the sustainability of the pension system over time.
Retire at 61
The governing authorities emphasize continued work as a means to stabilize the pension system, given the demographic trend of more retirees relative to workers. This concern underpins the revised retirement structure, with the retirement age and the required premium period extended to guard against future shortfalls. For workers who meet the conditions, there is a pathway to avoid some of the increases, reflecting a careful approach to fairness and fiscal health.
Early compulsory retirement can be triggered by certain job-related events such as layoff through an ERE process or other objective dismissals. It can also apply in cases of employer death or retirement, contract termination through judicial decision, force majeure, or experiences of gender-based violence. If any of these situations occurred on or after January 1, 2024, an eligible worker may retire earlier than the standard age, provided they have reached 38 years of contribution by a specified date. The framework recognizes those affected by abrupt changes in their employment circumstances and seeks to provide a feasible transition path.
On the other hand, for individuals who have fewer years of contribution, the retirement age may be set higher, requiring workers to wait until 62 years and six months to conclude their working life in light of special circumstances. The policy aims to strike a balance between rewarding long-term participation in the workforce and ensuring fairness for all contributors.