Let’s not sugarcoat the numbers. A retiree in Curaçao receives a maximum of 862 guilders per month (€411) under the AOV system. On Sint Maarten, the figure is 1,398 guilders (€670). For comparison: the average monthly salary—which itself is hardly sufficient—exceeds 2,100 guilders (€1,000). The pension barely replaces half a paycheck, and it certainly does not cover the costs of rent, healthcare, food, and electricity.
Only one-third of workers build up a supplementary pension. For the rest, it’s AOV or nothing. That is poverty in the making.
The contrast within the Kingdom is glaring. While Curaçao’s elderly are left to survive on these paltry sums, the basic pension in Aruba exceeds 1,200 guilders (€575)—still modest but noticeably higher. And in the Caribbean Netherlands, retirees receive around 2,600 to 2,700 guilders (€1,300) per month.
Governance failure
On top of the meager benefits, Curaçao’s pension funds have long suffered from weak governance. Risk management and conflict-of-interest policies are almost non-existent. Communication with participants is poor, leaving many unaware of what they’ve actually accrued or what fees are being deducted. Transparency is minimal, and this is not incidental—it is systemic failure. The same careless governance we see in other sectors now undermines the dignity of people who have worked their entire lives.
A second pillar is essential
The Central Bank of Curaçao and Sint Maarten is attempting to impose order, with plans to enforce stricter transparency, stronger integrity rules, and protections against fraud. These are welcome steps.
But let’s be honest: this is little more than damage control without a mandatory second pillar—a system in which employers and employees jointly contribute to pension savings. As long as this is absent, the overwhelming majority will remain dependent on an AOV that does not keep pace with inflation or wages.
The Central Bank is right to insist that the government must act. But it requires political courage to implement compulsory pension savings. Without it, Curaçao is heading toward a future where an entire generation of elderly will face nothing but existential insecurity.
Poverty is already here
This is not just a future problem. Today, right now, there are seniors trying to cover rent, medication, groceries, and electricity with 862 guilders per month. It is an inhumane situation, and it worsens each year.
The disparities within the Kingdom make it painfully clear: outdated systems, weak governance, and political inertia in Curaçao and Sint Maarten are leading directly to insecurity for thousands of elderly citizens, while in other parts of the Kingdom far more generous basic provisions exist.
This is no longer a technical problem. It is a social crisis that demands immediate political choices. Without bold action, current measures amount to nothing more than a band-aid on an open wound.
Curaçao’s society must face reality: this is a looming catastrophe. And every day that politicians fail to act, the cost is passed on to the elderly of today—and tomorrow.
