Where is Portuguese Social Security going?

Abstract

The main purpose of this text is to discuss the evolution of the Portuguese Social Security, in the context of the present difficulties of the Welfare State. The on-going revision of the foundations of the Welfare State is taken as the starting point for the debate, and thus the historical schemes of social security and their recent changes are placed in perspective. Portuguese Social Security schemes were designed in the 80s mainly to provide pensions, namely old-age-contingent benefits. In the 90s, they face challenges arising from deep changes in the Portuguese economy and society. In the short run, the role of Social Security in managing employment will have to be reconsidered, in order to support effectively active policies for employment growth. In the medium and the long terms, the demographic ageing process and the coming to maturity of the pension schemes should be dealt with, for they imply the growth of the deficit of the general contributive regime, in the present conditions of funding and eligibility. In the near future, the democratic institutions and the Portuguese society will face a major challenge: to achieve innovative solutions to rationalise the funding and the structure and the scope of the welfare benefits.