Retirement at age 60: who would access it, how the amount to be collected and the restrictions would be determined

The Minister of Economy of Uruguay, Gabriel Oddoneoffered details about the operation of the bill with which the government seeks to allow workers retire early at age 60as long as they have 30 years of contributions.

The economic measure arose from the guidelines received by the State through the Social Dialogue, and seeks to create a new retirement cause that enables a “general access mechanism” to allow Early retirement at age 60 or before age 65the age established by the 2023 social security reform.

Oddone stated that the cause will not have to do with the level of income or the type of activity that has been carried out, and that retiring at 60 years of age will be an option for all workers That’s how they want to do it.

This project, according to the leader, “protects the most vulnerable 30%” and makes their retirement conditions “equal or better” to those they had with the current retirement law. Meanwhile, higher-income workers will be able to retire between 60 and 65, but for a lower benefitwhich is considered an incentive for them to remain working until the age of 65, which will continue to be the retirement age in Uruguay.

He amount to be received would not be the same for all people who decide to retire before the age of 65. The benefit would be determined based on the years of contributionsthe declared income and the age at the time of retirement. In addition, it could contemplate contributions to the BPS, AFAP and the solidarity supplementas appropriate.

The measure takes into account differences in work trajectories, accumulated physical wear and tear, the various possibilities of remaining in the labor market at advanced ages and inequalities in people’s life expectancy depending on their socioeconomic level, according to the government.

Regarding the restrictions presented by the law, those who opt for early retirement at age 60 will not be able to return to work and collect the pension. retirement at the same time, unlike those who retire at age 65 under the current regime, who will be able to do so.

Lastly, the government ensures that the Social Security Bank (BPS) projects that the proposed changes do not present a danger to the economic and financial sustainability of the Uruguayan pension system.