The article addresses the growing concern of Portuguese people about retirement and presents the concept of Coast FI as a strategy for gaining financial autonomy. Portuguese Social Security faces serious challenges: the old-age dependency ratio will almost double from 39 to 73 per 100 people of working age between 2024 and 2100, according to Statistics Portugal (INE), and in 2025 consolidated expenditure reached 50,267 million euros, 16.4% of GDP, with a deficit of around 1,944 million euros.
Coast FI, popular on social media among younger generations, allows you to calculate how much money you need to have invested today so that, with compound returns of around 5% per year, it is possible to reach a capital target without needing to save more. The European Commission projects a drop in the gross pension replacement rate from 69.4% in 2022 to 38.5% by 2050, making it risky to rely solely on Social Security.
The article warns of pitfalls: return assumptions are not guarantees, inflation erodes purchasing power, and a market downturn near retirement can substantially reduce capital. The report coordinated by Jorge Bravo, "Reforming Pensions in Portugal," reinforces the need for complementary retirement systems. The recommendation is to use the Social Security Direct simulator to estimate the public pension and only invest the difference needed to supplement it, never confusing accumulated capital with money to spend.
The conclusion is that everyone should have a strategy for retirement, even without chasing American acronyms. Social Security will continue to be essential, but it does not replace a personal financial plan. Waiting for the future to resolve itself through State goodwill or through those who pay your salary does not constitute a retirement plan, the article reminds us.
