Serbia's early retirement penalties permanently reduce pensions up to 20%

Serbian law reduces a pension by 0.34 % for each month a worker retires before age 65. A one‑year early retirement cuts the benefit by 4.08 %, two years by 8.16 % and five years by 20.4 %. The reduction remains permanent even after the retiree reaches 65, and it is not erased if the person later re‑enters employment. Citizens may withdraw a pending early‑retirement request before the administrative decision is final.

At the end of 2024, 75,200 people were receiving early‑age pensions. According to the 2025 statistical report of the Pension and Disability Insurance Fund, the average new retiree is 64 years old, and the average pension duration is 21 years for women and 16 years for men. Women live on average two years longer than men after retirement, both reaching an average age of 78 at death. The average monthly pension is 50,658 dinars, about 46.8 % of the average net salary.

The opposition party Serbia Center has called for a non‑contributory social pension of €100 per month for seniors without any income, arguing that more than 120,000 citizens over 65 are currently without a pension and face a 25.8 % poverty risk. The party estimates the program would cost roughly 17.2 billion dinars a year, or 0.17 % of GDP.