UGT questions impact of proposed individual pension accounts in Portugal

The Portuguese labor union UGT (União Geral dos Trabalhadores) has raised concerns regarding a proposal for Social Security reform that includes a transition toward an individual accounts model for workers. While acknowledging the technical relevance of the working group's report, the union emphasizes that financial sustainability must not come at the expense of guaranteeing dignified pensions for current and future retirees.

UGT Secretary-General Mário Mourão stated that the union requires clear simulations across various salary levels and career profiles before any decisions are made. The union also criticized the current analysis of the Caixa Geral de Aposentações (CGA) balances, arguing that the state's decision to close the CGA to new subscribers should not result in transferred responsibilities or reduced rights within the Social Security system.

One of the central proposals under discussion involves the automatic adherence to professional pension plans to mitigate income loss upon retirement.