Retirement Age Pushed to the Gates of the Cemetery Because of Subsidies

By José M. Moreno, Regiao Sul

September 2006

We are constantly being bombarded with the "phantasm" of the bankruptcy of Social Security. The discussion is old and is sincerely beginning to tire me.

In my view, everything succeeds when the politicians in the Executive wish to confound public opinion that they have managed to salvage (once again) the system. But it is shortly followed by a big mess and new cuts, more sacrifices, etc... whilst at the same time they are giving subsidies. In short, they are preparing the way for more illusion, which we are now used to.

More serious is that after the governors come the "parrots"; all of whom, in the same tone of voice, say that the Social Security system is after all failing,... whilst with their free hand receiving subsidies. And they not only parrot, they scribble on and receive, whilst also saying that the governors are the "poor things" who can do nothing... with the bad following just behind...

It is nonsense!... They all act together (I say), once again pushing back the retirement age to the gates of the cemetery?!

Undeniably, it is the Portuguese population that is becoming poorer - "joyfully", I think -, because they accept the new policies for combating poverty and social exclusion, whilst taking from the "public coffers" the "subsidies" which feed the many social agencies which are sprouting up like mushrooms.

Around 75% of the Portuguese population depend on their salary and their old age is supported by the funds they have paid into the system in order to receive their pension later. There does not exist any evolutionary model which stands up to inflation. Portugal has a high rate of poverty - there are more than two million living in this state. One million, one hundred thousand pensioners continue to receive pensions below 300 euros. The average invalidity pension in 2005 was 285.50 euros and the subsistence pension was only 164 euros.

Despite the economic crisis and the failing social situation in which we find ourselves, the Social Security system ended the year 2005 with a positive balance of 294 million euros. These results could have been much better had there not been so much unemployment, so many companies (multinationals) closing so that they can dislocate in search of other new subsidies. All because of subsidies!