Uruguay's Ministry of Economy and Finance outlined proposed legislation creating a general early retirement route from age 60 for people with 30 years of service. The measure, developed from recommendations of the Social Dialogue, is intended to account for differences in employment histories, physical strain, ability to remain employed at older ages and life expectancy across socioeconomic groups. Beneficiaries could not combine this retirement route with employment. The benefit design would allow workers on low and lower middle incomes to retire with payments similar to or higher than those available before the 2023 reform. Middle and higher income workers could also qualify, but would receive additional incentives to remain employed until the normal retirement age of 65. The bill would also revise the solidarity supplement to continue supporting lower pensions, replace its discretionary adjustment mechanism with a more predictable approach, broaden access to additional permanent incapacity payments and remove deadlines for recognizing service completed before employment records began in 1996. Actuarial projections by the Social Security Bank indicate that the proposals would not compromise the pension system's financial sustainability. The maximum annual cost is estimated at 0.16% of gross domestic product between 2040 and 2045, before declining to zero over the long term.
Uruguay's Ministry of Economy and Finance advances bill allowing retirement at 60 after 30 years of service
Uruguay's Ministry of Economy and Finance has advanced a bill creating an early retirement route at age 60 after 30 years of service, without compatibility with employment. The proposal prioritizes low and lower middle income workers and revises several pension supplements and eligibility rules. Its maximum annual cost is projected at 0.16% of gross domestic product between 2040 and 2045, declining to zero over the long term.