Portugal faces economic challenges from rapid population aging

Portugal is facing a significant structural transformation due to an aging population. According to the National Institute of Statistics, the aging index in 2025 reached 188.8 people aged 65 or older for every 100 young people. As life expectancy increases, individuals reaching age 65 can expect to live more than two decades, necessitating a shift in how the country approaches social and economic integration.

The economic implications are substantial. The OECD estimates that expenses related to aging in Portugal could rise from 23.5% of GDP in 2025 to 27.3% by 2045. These costs encompass pensions, healthcare, long-term care, and other associated services. Beyond fiscal concerns, the demographic shift impacts housing, mobility, the labor market, urbanism, and family support systems.