Oranjestad, Aruba - A growing debate over pension policy is occurring between the Partido Patriotico di Aruba (PPA) and the ruling Movimiento Electoral di Pueblo (MEP). While the retirement age in Aruba is being incrementally raised to 65, PPA is calling for sweeping reforms to provide better financial security for the elderly. MEP, which is committed to gradual adjustments, is facing criticism from PPA, which believes the current policy falls short in supporting retirees amid the rising cost of living.
MEP's policy, which aims to gradually increase the retirement age since 2015, was introduced to maintain the financial stability of the pension system, the government said. "By increasing the retirement age, we want to provide sustainable support," an MEP spokesperson explained. This policy means that Arubans, depending on their date of birth, will have to work until 2024 until they turn 65 before they receive a full pension.
However, PPA disputes that this approach is insufficient and proposes to lower the retirement age again. They want to increase AOV benefits to address the growing gap between pensions and the cost of living. "Rising prices are hitting seniors hard, and current pension policies do not meet their financial needs," said PPA spokesman, who called for an immediate increase in pensions and a stable retirement age at 60.
The accessibility of the "reparation supplement," a monthly supplement of Afl. 200 for pensioners, is also a point of criticism. PPA points out that this supplement does not adequately compensate for increased costs and calls for additional support measures to ensure the purchasing power of the elderly. MEP stresses that the surcharge is intended as temporary relief, and that additional reforms will be considered in the future to better support retirees.
With elections on the horizon, the discussion of pension policy promises to be a central issue. While MEP calls for stability and sustainable reforms, PPA calls for immediate action to support the most vulnerable elderly.
