WILLEMSTAD – More than a quarter of Curaçao's population is now aged 65 or older, underscoring the growing financial challenge facing the country's old-age pension system as the government moves to formally increase the AOV benefit to XCG 1,000 per month.
According to figures from the Central Bureau of Statistics (CBS) cited in information surrounding proposed changes to the AOV and survivor-benefit system, more than 40,000 Curaçao residents were aged 65 or older on January 1, 2026.
They represented 25.9 percent of the population. The number of residents in this age group has nearly doubled over the past 15 years.
The demographic shift is particularly important for Curaçao because the AOV operates largely on a pay-as-you-go basis. Contributions collected from today's working population are used to finance pensions being paid to current beneficiaries.
This means the sustainability of the system depends heavily on the relationship between the number of people working and paying contributions and the number of people receiving pensions.
The issue has gained additional importance following the government's decision to increase the full monthly AOV benefit for eligible pensioners living in Curaçao from XCG 862 to XCG 1,000 as of January 1, 2026.
The government is now seeking to give that increase a formal statutory basis retroactive to the beginning of this year. The proposed legislation would also increase AWW survivor benefits beginning January 1, 2027.
The Social and Economic Council (SER) submitted its advice on the legislation to Finance Minister Charles Cooper and SOAW Minister Charetti America-Francisca on Monday.
For pensioners, the higher AOV directly increases the income available to cover food, utilities, housing, healthcare and other daily expenses. However, the demographic trend also raises a broader question about how Curaçao will finance higher benefits as its population continues to age.
The consequences extend beyond pensioners. Workers and employers finance the system through contributions, while the government can face additional financial pressure when contribution revenues are insufficient to cover obligations.
The proposed legislation also introduces a new mechanism for future benefit adjustments based on consumer prices and economic growth. Such adjustments could help protect pensioners' purchasing power, but they also make the long-term financial sustainability of the system increasingly important.
With more than one in four residents already aged 65 or older, the debate over the AOV is therefore no longer limited to the size of the monthly pension. It increasingly concerns how Curaçao can provide adequate income for a rapidly growing elderly population while ensuring that the pension system remains financially sustainable for future generations.