Over the last decade, returns on retirement savings in Portugal have underperformed compared to most OECD countries. Seven out of every ten euros are invested in bonds, which represents the second highest allocation among member nations.
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A new analysis shows that the average Portuguese state pension of 691.31 euros covers only five to six months of care in a private or non-subsidized social care facility, where monthly fees average 1,717 euros for a double room. Families with middle-class incomes often face an annual deficit exceeding 11,000 euros, as they earn too much to qualify for state support but lack the liquidity to afford private care, frequently resorting to selling the elderly person's home to cover costs.
An OECD report indicates that most Portuguese students who exceed the standard five-year timeframe to complete secondary school end up dropping out entirely. While the country shows significant progress in academic attainment—with secondary school non-completion dropping from 33% in 2015 to 15% in 2025—data shows that only 2% of those who fall behind remain enrolled, while 14% abandon their studies.
The total annual value of old-age pensions in Portugal is insufficient to cover even 50% of the annual cost of a private care home stay. High demand and a significant shortage of available spots are currently creating critical difficulties for families seeking residential care.