WILLEMSTAD – Curaçao’s financial buffer for its social insurance system is projected to fall to approximately ANG 63 million by the end of 2026 as the country’s combined social funds move from a surplus last year to an expected deficit this year.
The so-called stabilization fund, or schommelfonds, serves as a reserve to absorb deficits within Curaçao’s social insurance system.
The reserve strengthened considerably during 2025, increasing from slightly more than ANG 51 million to nearly ANG 92 million by the end of the year.
That improvement is now expected to be partly reversed.
The Social Insurance Bank (SVB) currently forecasts a combined deficit of ANG 28.6 million for the social insurance funds in 2026. As a result, the stabilization reserve is expected to decline to approximately ANG 63 million by year-end.
The change comes despite the 2026 budget initially projecting a combined surplus of almost ANG 37 million. The difference between the budget and the latest forecast amounts to more than ANG 65 million.
Higher expenditures are the main factor behind the deterioration. Total social insurance spending is now projected at approximately ANG 1.3 billion, around ANG 56 million above budget.
The increase in the maximum AOV pension from ANG 862 to ANG 1,000 per month as of January 1 is among the factors putting additional pressure on the funds. The increase resulted from the National Covenant reached between the government and organizations representing pensioners.
At the same time, premium income is expected to fall slightly short of expectations, with approximately ANG 982 million projected for the year.
Despite the expected decline, the stabilization fund would remain above its level at the beginning of 2025 if the current projection holds.
The figures are not yet final. The SVB forecast was prepared using preliminary results through March, and the government’s financial reporting specifically notes uncertainty surrounding the Basic Health Insurance fund. The projected ANG 63 million year-end reserve could therefore change as additional financial data becomes available.