WILLEMSTAD – The Social Economic Council (SER) supports maintaining the increase in Curaçao’s AOV old-age pension to XCG 1,000 per month, but says the government should first amend the legislation to properly establish the higher amount and address several unresolved issues in its broader proposal.
Since January 1, 2026, people entitled to a full AOV pension have been receiving XCG 1,000 per month instead of XCG 862. However, payments of the higher amount began before the legislation was fully amended to reflect the change.
According to the SER, this discrepancy between the law and current practice should be corrected quickly to ensure clarity about the rights of AOV recipients and the legal basis on which the government is making the payments.
The advisory body is therefore recommending a limited “repair law” that would formally establish the full AOV pension at XCG 1,000 per month.
The legislation should also clarify which AOV recipients living outside Curaçao are entitled to the same amount, taking into account a 2021 ruling by the Joint Court of Justice.
The SER also wants a clear legal basis for the one-time allowance of up to XCG 2,500 per AOV recipient. The first portion has already been paid, while a second payment is expected no later than January 2027.
Long-Term Financing Raises Questions
While supporting the XCG 1,000 pension, the SER is calling for considerably more clarity about how the increase will be financed over the longer term.
The additional cost is estimated at approximately XCG 48 million in 2026, increasing to more than XCG 51 million annually by 2030.
The SER does not conclude that the increase is unaffordable. However, it wants the government to demonstrate more clearly where the money needed to finance the higher pension will come from in future years.
This is particularly important because the AOV is not Curaçao’s only major financial obligation. Government revenues could also come under pressure if tourism weakens or the broader economy performs worse than expected.
The SER therefore believes the government should look beyond the next budget year and prepare a financial plan covering at least the next 10 years.
The council also cautions against assuming that increasing the AOV to XCG 1,000 automatically eliminates poverty among senior citizens.
The higher pension provides additional income, particularly for elderly residents who have no supplementary pension. However, according to the SER, the available information is insufficient to determine how many seniors will actually be lifted above the poverty line.
Whether XCG 1,000 is sufficient depends on factors such as housing expenses, healthcare costs, other sources of income and whether a person lives alone or shares a household.
The SER therefore wants research to be conducted within one year to identify which groups of elderly residents continue to have insufficient income despite the increase.