WILLEMSTAD – Curaçao’s pension system is facing growing pressure as only a minority of the working population builds up supplementary pension rights, while demographic trends point to a rapidly ageing society. These concerns were highlighted during the Happy Aging Conference held in January.
During her presentation, Zsani Hato-Boeldak explained that the pension system of Curaçao and Sint Maarten is structured around three pillars: the state pension, employer-based pension schemes, and individual voluntary pension savings. Particular attention was given to the second pillar, employer pensions.
Recent figures presented at the conference show that only about 32 percent of the working population accumulates pension rights through their employer. As a result, the majority of future retirees are expected to depend largely on the state pension.
However, the state pension offers only limited income protection. Data presented at the conference indicate that the average state pension benefit in Curaçao amounts to roughly 22 percent of gross income, significantly lower than in the Netherlands. Combined with rising living costs, this increases the risk of financial hardship among older adults.
During a panel discussion, Shekinah Dare addressed the reasons why many people postpone pension planning. Drawing on research by the Centrale Bank van Curaçao en Sint Maarten, she explained that low financial literacy and day-to-day financial stress play a major role. Many households struggle to meet basic expenses, leaving little room for long-term planning. Psychological factors such as stress, uncertainty, and anxiety further contribute to postponement.
Demographic developments are adding to the challenge. Curaçao’s birth rate is estimated at around 1.4 children per woman, while life expectancy continues to rise. This leads to a declining ratio between working individuals and retirees, placing structural strain on the pension system. Without additional pension accumulation, experts warned that a growing group of older residents may face insufficient income.
According to Dare, traditional financial education alone is unlikely to reverse this trend. She advocated for behavior-oriented measures such as automatic enrollment in pension schemes, simplified choices, and timely reminders. These so-called nudges can help people make better financial decisions without requiring constant active engagement.
The overarching message of the conference was clear: if Curaçao aims to ensure dignified and independent ageing, investment in pension awareness, improved pension arrangements, and behavior-informed policy is urgently needed.