THE HAGUE, WILLEMSTAD – Reforming Curaçao’s social security system is one of the most politically sensitive tasks under the Landspakket (Country’s Economic Reforms).
The report sets January 1, 2026 as the deadline to establish a clear reform roadmap.
The AOV Constraint
The commission reviewing AOV sustainability is working under strict political conditions:
• No increase in retirement age
• No premium increases
These constraints significantly limit available solutions.
Yet demographic pressure remains real. As life expectancy rises and the working population stabilizes or declines, financial sustainability becomes harder.
Broader Welfare Reform
Discussions also include:
• Modernization of welfare benefits
• Potential unemployment insurance
• Reforms to sickness and accident insurance
Social reform always triggers public concern.
But postponing reform increases long-term financial pressure.
Balancing social protection with fiscal sustainability is one of the defining political challenges ahead.