The Social Security 'financial cushion' is expected to reach 58.5 billion euros by 2027

The Financial Stabilization Fund of Social Security is projected to reach approximately €58.5 billion by 2027, covering over two years of pension expenses. Minister Rosário Palma Ramalho announced this during a parliamentary hearing regarding the 2027 State Budget proposal. The fund will represent 17.2% of GDP and will be bolstered by Social Security surpluses. The government plans to update pensions and implement a new contribution cycle regime starting in January. Palma Ramalho emphasized the favorable financial position of Social Security but acknowledged ongoing structural issues such as average wages and youth unemployment. She reiterated the necessity for labor law reform.