WILLEMSTAD – The ongoing debate about the adequacy of the General Old Age Pension (AOV) is increasingly supported by hard data. New research from the Central Bank of Curaçao and Sint Maarten shows that while many households remain financially stable on paper, rising costs and limited savings capacity are steadily eroding financial security, particularly among older residents.
According to the CBCS household survey, nearly 80 percent of respondents expect prices to rise further in the coming year. At the same time, fewer households are able to build long-term savings, with the number of people holding a formal savings account declining since 2020. For pensioners and near-retirees, this combination leaves little room to absorb inflation.
The data help explain why AOV adjustments continue to spark political tension. Even after recent increases, the pension remains largely fixed, while daily expenses fluctuate upward. The survey shows that older age groups are significantly less optimistic about their financial future than younger respondents, reflecting a reality where income growth is limited but expenses are not.
What the figures underline is that the AOV discussion is no longer purely about pension policy. It has become inseparable from broader cost-of-living pressures, including utility bills, healthcare expenses, and food prices. Without structural measures to address household purchasing power, periodic AOV adjustments risk becoming temporary relief rather than sustainable solutions.
