WILLEMSTAD – The Central Bank stresses that increasing the AOV alone is not a sustainable solution and calls for broader reforms to protect both retirees and public finances .
Among the measures highlighted are targeted income support for low-income pensioners, rather than across-the-board increases, and limiting indexation to residents of Curaçao. The report also points to expanding the contribution base by formalizing undocumented labor and strengthening compliance with social insurance payments.
In the longer term, the Central Bank underscores the importance of developing a second pension pillar through mandatory employer-based retirement schemes. Such reforms would reduce reliance on the AOV as the sole source of income for future retirees.
Without decisive action, the report warns, Curaçao risks postponing today’s pension problem into a much larger fiscal crisis tomorrow.
