Montenegro pension 2026: retirement age, the €456 minimum pension, average pension by town and pensions for foreigners

In Montenegro you are entitled to an old-age pension at 65 with at least 15 years of insurance, at 61 with 40 years of insurance, or with 40 years of effective insurance at any age. In 2026 a woman retires at 63 years and three months with 15 years of insurance, because the threshold rises until 2032. The minimum pension has been €456 since May 2026, and the average pension in August 2026 was €550.72. Pensions are indexed on 1 January, 1 May and 1 September and are not part of taxable income.

The rules are set by the Pension and Disability Insurance Law with its 2023, 2024 and 2025 amendments, and payment data are published by the Pension and Disability Insurance Fund (Fond PIO). This guide explains the conditions for a pension, the transition period for women, early retirement, amounts and indexation, tax, and years worked abroad.

When are you entitled to an old-age pension?

• Only insurance periods for which contributions were paid count towards entitlement; special periods, such as time outside work that the law recognises, increase the pension but do not create the right to it.
• You start the procedure by applying at a regional unit of Fond PIO.

What applies to women in the transition period?

After 2032 the general conditions apply to women as well: 65 with 15 years of insurance, or 61 with 40 years.

How does early retirement work?

• You can take an early old-age pension at 63 with at least 15 years of insurance; for women it has applied since 1 January 2026.
• The pension is permanently reduced by 0.35% for every month you retire before 65, so a man who leaves at 63 loses 8.4%.
• During the transition period a woman's reduction is counted up to that year's retirement age, so leaving at 63 in 2026 means a reduction of 1.05%.

How much is the pension?

• The minimum pension is calculated as if the personal coefficient were 0.5 and cannot be lower than the statutory €450, which has been indexed like other pensions since 2026.
• Fond PIO also pays 11,047 pensions to recipients in the former Yugoslav countries, averaging €123.81, because these are mostly pro rata parts of a pension.

How are pensions indexed?

• The value of a pension for one personal point is indexed on 1 January, 1 May and 1 September, in line with consumer prices and average wages in the previous four months.
• When prices rise faster than wages, 75% of the indexation follows prices and 25% wages; when wages rise faster, the weights are reversed.
• Pensions were indexed by 0.38% from 1 January 2026 and by 0.95% from 1 May 2026; the indexation from 1 January 2025 was 6.85%.
• The minimum pension was not indexed in 2024 and 2025; it rose from €450 to €451.71 in January 2026 and to €456 in May.

Is a pension taxed?

No. The Personal Income Tax Law does not treat a pension as income, except pensions received under the law on salaries of state and public officials. The law makes no distinction between a Montenegrin and a foreign pension received by a Montenegrin resident, but double taxation also depends on the rules of the country that pays the pension.

What applies to years worked abroad and to foreigners?

• Montenegro has social security agreements with 25 countries, including Serbia, Slovenia, Austria, Germany, Italy and France, and with Türkiye since 1 December 2015.
• Under an agreement, insurance periods in both countries are added up for entitlement, and each country pays a pro rata part of the pension for the periods completed there; periods shorter than 12 months are usually taken over by the other country.
• The statutory €450 minimum does not apply to pro rata pensions, but a recipient resident in Montenegro can claim the difference up to the minimum pension if the Montenegrin and foreign pension together fall short of it.
• Periods from a country with which Montenegro has no agreement are not added up, so a pension is paid only if enough years were completed in that country.
• Montenegro has no special residence permit for pensioners; a foreign pensioner most often lives here on the basis of owning property.

The cost of living in Montenegro is explained in our guide to the cost of living, healthcare for foreigners in our guide to health insurance for foreigners, and the wages pensions are compared with in our guide to the minimum and average wage. How the pension exemption, residence and tax treaties work together for retirees is set out by RoNa Legal.

Frequently asked questions

What is the retirement age in Montenegro? 65 with at least 15 years of insurance. In 2026 a woman retires at 63 years and three months, and the threshold rises until 2032.

What is the minimum pension in Montenegro in 2026? It has been €456 since May 2026, after indexation of 0.38% in January and 0.95% in May.

What is the average pension in Montenegro? In August 2026 the average pension was €550.72, and the average old-age pension €583.44.

When are pensions indexed? On 1 January, 1 May and 1 September every year, in line with prices and wages in the previous four months.

Are pensions taxed in Montenegro? No, except pensions of state and public officials received under a special law.

Can a foreigner get a Montenegrin pension? Yes, if they worked and paid contributions in Montenegro. Under a social security agreement the periods from the other country are added up, and each country pays its own part of the pension.

Sources

The conditions for a pension, the minimum pension and indexation are set by the Pension and Disability Insurance Law (Fond PIO consolidated text of 1 January 2026, Articles 17, 29, 29a and 58), as amended by Official Gazette 125/2023. The transition conditions and early retirement are published by Fond PIO, pensioner numbers and averages by Fond PIO statistics, and the 2026 indexation by Dan. The taxation of pensions is set by the Personal Income Tax Law (Article 5), as amended by Official Gazette 160/2025. The information was checked on 26 September 2026. Fijaka is a classifieds platform; this article is not legal advice.