President Piñera announces publication of the Guaranteed Universal Pension, which will benefit 2.5 million people: “We are taking the next step towards treating our senior citizens with greater dignity, care and gratitude.”
The measure will provide a maximum 185,000 Chilean pesos (US$230) to the pensions of all adults over 65, retired or not, who are not in the highest 10% income bracket.
Chile’s President Sebastián Piñera on Friday announced the publication of the law to create the Guaranteed Universal Pension (Pensión Garantizada Universal). It will benefit 2.5 million people over 65 years old and will complement their individual pension savings.
“We are taking the next step towards treating our senior citizens with greater dignity, care and gratitude, and moving forward with our commitment to improve the lives of senior citizens through many government initiatives,” the President stated in an event at the Moneda Palace. He was accompanied by Interior Minister Rodrigo Delgado, Treasury Minister Rodrigo Cerda, Minister Secretary General of the Presidency Juan José Ossa, Minister Secretary General of the Government Jaime Bellolio, Acting Social Development Minister Andrea Balladares, Labor Minister Patricio Melero, Women and Gender Equity Minister Mónica Zalaquett, Economy Minister Lucas Palacios, and Justice Minister Hernán Larraín.
The Guaranteed Universal Pension will replace the current Solidarity Pillar benefits with higher amounts. Additionally, the Basic Solidarity Pension for Disability will increase, as will the coverage provided by the Solidarity Pillar for Disability, increasing from the current 60% to cover the 80% most vulnerable population.
“We have included 600,000 people that are currently not covered or benefited by the Solidarity Pillar; they will benefit from this Guaranteed Universal Pension. The large majority of these 600,000 newly-accounted-for individuals are middle-class women,” the President explained.
The Guaranteed Universal Pension will thus provide state support of up to 185,000 Chilean pesos (US$230) to everyone over 65 years old, retired or not, who are among the 90% most vulnerable population.
On February 1, the 600,000 new beneficiaries will be able to register with the Social Security Institute (Instituto de Previsión Social, IPS), and payments will start to be made from Friday, February 18.
This initiative is part of the measures adopted by President Piñera’s Government to improve Chileans’ pensions. The first stage was the strengthening of the Solidarity Pillar, which allowed for a 50% improvement to the Basic Solidarity Pension (PBS) and a 70% improvement to the Solidarity Pension contribution (APS). This reform has benefitted more than 1.8 million of the country’s most vulnerable pensioners.
“We senior citizens have years of experience, but we also have the youth of ideals. It’s an age that many people look at with fear, but it should be a stage in life where we can keep developing to our fullest, to continue being happy,” the President concluded.