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Without Social Security Benefits 4.4 Million Portuguese Would Be Poor – Ine



Without Social Security Benefits 4.4 Million Portuguese Would Be Poor - Ine

Without Social Security Benefits, 4.4 Million Portuguese Would Be Poor – Ine. In a recent revelation, the National Statistics Institute (INE) shed light on the crucial role of social security benefits in preventing poverty in Portugal. The institute’s data, extracted from the 2023 Living Conditions and Income Survey (ICOR), emphasized the significant impact of these benefits on the nation’s economic landscape.

Without Social Security Benefits 4.4 Million Portuguese Would Be Poor – Ine

Alarming Figures Social Security Benefits and Poverty Rates

The INE’s report discloses a startling fact: without social security benefits, nearly 4.4 million people in Portugal would be classified as poor. The data, based on the year 2022, reveals a 17% at-risk-of-poverty rate, signaling an increase of 0.6 percentage points from the previous year.

Social Security Contribution to Poverty Reduction

In 2022, social security benefits played a pivotal role in reducing the risk of poverty by 4.2 percentage points, according to INE. The report highlights that, considering only income from labor, capital, and private transfers, over 41% of the population would face poverty.

 Pension Impact A Significant Drop in Poverty Rates

Retirement and survivors’ pensions contributed significantly to a 20.6 percentage point drop in the at-risk-of-poverty rate. This resulted in a post-pension, pre-social security benefits rate of 21.2%.

Changing Trends Rising Poverty Intensity and Income Inequality

While social security benefits made a notable impact, the poverty intensity rate increased to 25.6%, indicating insufficient resources among the population living in poverty. Additionally, income inequality rose in 2022, as reflected in the Gini coefficient, reaching 33.7%.

Severe Material Deprivation A Closer Look

The INE report delves into the concept of severe material and social deprivation, drawing on indicators related to economic difficulties and individual well-being. Approximately 5% of the general public faced severe material deprivation, a figure decreasing over the past five years.

Economic Struggles Indicators of Material Deprivation

The report highlights indicators such as the inability to replace used furniture, afford a holiday away from home, or handle unexpected expenses. These indicators witnessed an increase, signaling economic challenges for a significant portion of the population.


INE’s comprehensive analysis underscores the indispensable role of social security benefits in averting widespread poverty in Portugal. As the nation grapples with changing economic dynamics, understanding these insights becomes crucial for policymakers and citizens alike to foster a more equitable and prosperous society.

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