Bonus of 500 thousand pesos for older adults in Colombia: beneficiaries and how the subsidy will be collected

With the objective of helping the elderly who could not enter a pension and do not have a fixed income, the president of Colombia, Gustavo Petro, announced the ‘500 thousand pesos bonus’. This sum of monthly money will be given to people who need it and would be financed through the pension reform, which must first be approved by the Legislature. When do they start paying this subsidy and who are the beneficiaries? Know all the information that is known so far about this payment in the following paragraphs.

This benefit would reach three million older adults in Colombia and would imply an expense of 18 billion annually. “Through a bonus, instead of $80,000, it becomes $500,000 and makes it possible for the old man who is not currently pensioned to overcome the poverty line,” said Gustavo Petro.

“There are three million older adults that multiplied by $500,000 clearly implies a pension reform. That is to say, that part of the contributions that remain in private funds enter Colpensiones, originating the pillar system”, explained the president of Colombia.

When do they pay the Bonus 500 thousand pesos for older adults in Colombia?

At the moment, the payment date of this new subsidy announced by President Gustavo Petro is unknown. It should be noted that the Ministry of Finance calculated in May that there are approximately 5.6 million people who are of pensionable age, but who do not have access to a monthly income for various reasons.

How will the pillar system for the payment of the 500 thousand pesos Bonus work?

In the last few days, the media revealed how the new system of pillars for the payment of the 500 thousand pesos Bonus for older adults in Colombia will work. Know all the information below:

  • Basic solidarity pillar: an allowance of 500,000 pesos, half the minimum wage, would be guaranteed to three million older adults living in poverty, who do not have a pension.
  • Contributory pillar: workers must contribute to Colpensiones on the basis of between one and four minimum wages, with the contribution they would be guaranteed a basic pension under the average premium regime. Within this, private funds would also enter, since the reform would establish that people whose income is greater than four minimum wages freely decide where to contribute the surplus.
  • Complementary voluntary savings pillar: in this, Colombians who want to increase their pension could save in a voluntary fund.

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