Resumen de Pension policies and income security in retirement: a critical assessment of recent pension reforms in portugal

María Clara Murteira

• This paper aims to emphasize the idea that the income support guaranteed by the pension schemes should be a matter of primary concern when pension policies are designed. This subject is closely related to the social function of this system. As with any other system, the analysis and assessment of a pension system should consider, first of all, the success in meeting its purpose and objectives. As a consequence, the income guarantee provided in old age should not been seen as the adjustment variable (i.e. a residual subject) in a policy designed to achieve financial sustainability. The costs of pension systems must not be seen as “the objective” to minimize. Instead, they should be regarded as “the restriction” to face. Based on this argument, I develop a critical assessment of recent pension reforms in Portugal and propose a methodology for policy formulation that takes income security in retirement as the starting point.