WILLEMSTAD - The Social Insurance Bank (SVB) intends to raise the retirement age by the year 2030. The social insurer has submitted a proposal to the government for this purpose. This proposal is part of an action plan by SVB to ensure that certain funds, particularly the old-age pension, do not encounter financial difficulties.
A few years ago, the retirement age was already increased from 60 to 65 years for the same reasons. However, given the aging population in society, this retirement age is now under pressure once again.
In the recent annual report presented by SVB, the organization emphasizes the recommendations in the concluding section, where the rapid aging becomes evident in the AOV fund (old-age pension) and the costs for the basic insurance.
According to the insurer, without acceptable and sustained economic growth leading to a significant increase in the premium base, a policy without change and implementation of the given recommendations will worsen the situation.
SVB hopes that the necessary decisions regarding the various proposals, measures, and their implementation will be taken as soon as possible to prevent disruption of the system.
Furthermore, it is mentioned that a Commission for Social Insurance Reform has been established to address, among other things, the commitments in the government agreement. The commission has conducted research on the social security system in Curaçao and has made recommendations to make the system sustainable.
The final report on this research on social security in Curaçao, in line with measures for the labor market, was handed over to the Minister of Social Development, SOAW, last month.
Some important recommendations in this context include raising the retirement age by 2030 and extending the period of self-risk for employees in case of illness.