Colombia’s House of Representatives has approved a major pension reform spearheaded by President Petro’s government, demonstrating a crucial shift towards social equity.
The reform, set to take effect in July 2025, introduces significant changes, including a new threshold for pension contributions and the establishment of a pension fund managed by Banco de la República.
Notably, the reform reduces the contribution period for women and introduces a lifetime pension for over-65s with limited contributions, catering to those in financial need.
Colombia’s Pension Overhaul: A New Dawn
This overhaul benefits 18 million Colombians, with a focus on support for the vulnerable and poor, marking a pivotal moment in rewriting the social contract for economic security in old age.
By enacting this reform, Colombia showcases proactive governance and a commitment to creating a more equitable society where retirement security is a right, not a privilege.