The social security reform is a project that has all of Uruguay in suspense and exposed some inconsistencies in the proposal after activating the internal one in the government coalition.
The Uruguayan retirement system consists of a mixed regime, on the one hand, all workers must contribute to the Social Welfare Bank (BPS)which is the body in charge of paying benefits such as old-age pensions, disability, family allowances, among others.
On the other hand, from a certain age or amount of salary, they are obliged to contribute to the Pension Savings Fund Administrator (AFAP), Therefore, once they retire, Uruguayans will receive two complementary pensions. The age required to retire is 60 years and are required 30 years of services. The minimum age requirement is one of the keys that the pension reform project intends to modify, increasing it from 60 to 65 years, a point highly questioned by the opposition.
What happens in the other countries?
In Argentinathe retirement age differs by gender and corresponds to the 60 years for women and 65 for men. The years of service required for retirement are 30 years and the current retirement system is state-owned and pay-as-you-go, that is, it is nourished by part of the income of active workers, which is mandatory.
Brazilfor its part, coincides with the age of the people with Argentina, in what refers to retirements by age, but differs in the amount of contributions since they require 180 monthly contributions, that is, 15 years of service.
In Chilithe retirement age is also 65 years for men and 60 for women, although you can withdraw earlier if you have sufficient funds, equivalent to a 70% of average wages taxable income received and declared income. In this country, the system is of mandatory individual capitalization, where a monthly contribution is made to the pension fund administrators (AFP).
Paraguayan There is no difference by gender when calculating retirement and they have three options, depending on age and the number of years of contributions. For people with 55 years of age and 30 years of contributionthe 80% of the average of the last 36 months of your salary, while people with 60 years and 25 years of part charge 100%. From the age of 55 and with 30 years of contribution, 4% is added as one year of work increases.
For his part, Colombia It is one of the countries with the lowest age requirements for those who want to retire, since they demand that men are 62 years old and women 57. On the other hand, to access the pension they need to have contributed 1,300 weeks, that is, about 26 years. The retirement system is made up of two regimes, the solidary of Average Premium with Defined Benefit (RPM)and the Individual Savings with Solidarity Scheme (RAIS).
One of the highest minimum pensions in the region
Uruguay has the second highest minimum retirement in South America, estimated at 447 dollars, showed a report by the Focus Market consultancy.
The ranking of minimum retirements leads them Ecuador with $450 after more than 40 years of contributions. bolivian ranks third with a pension of 298 dollars and among the last places Paraguay (u$s 173), Argentina (u$s 156) and Venezuela (u$s 6), ninth, tenth and eleventh respectively.
Source: Ambito
