Bogotá — The city hums with the familiar rhythm of early morning traffic, a reminder that life, despite its growing complexities, never pauses. For the 14% of older Colombians who still contribute to the pension system, that rhythm is a bit more anxious, a little more uncertain. As the sun rises over Bogotá’s skyline, a truth becomes clearer: Colombia’s pension system, once a safety net, is fraying at the edges.
The reform approved in recent years was a step forward, but the deeper issues—of age, of contribution weeks, of sustainability—still gnaw at the edges of the policy, waiting for a more substantial fix. It’s not just a question of how many will contribute, but what happens when they stop.
Colombia’s Pension Problem: More Than Just Numbers
There’s a temptation to let the numbers do the talking. After all, when you hear that only 14% of older adults in Colombia contribute to a pension, and that the system itself only covers 43% of the total working population, it’s easy to shift into a mode of analysis that feels distant and cold. But behind these statistics are real stories—stories of aging parents, grandparents, neighbors, and friends who face a future with no financial security.
Reform seems inevitable. The pension system reform passed in 2023 aimed to address these issues, but it’s clear that further adjustments are needed. Retirement age may have to increase, and the number of contribution weeks could be extended. Yet, the heart of the issue goes beyond these mechanical fixes. It’s about dignity. It’s about making sure that the older generation—who have given so much—don’t spend their twilight years in economic uncertainty.
Youth Employment and Pension Contributions: Fragile Hope
Colombia’s youth face a different kind of uncertainty. While 59% of young workers contribute to the pension system, there’s still a significant gap—41% of youth are left outside of formal pension systems, often working in informal jobs. What does this mean for the future? If this trend continues, what safety net will remain when today’s youth become tomorrow’s older adults?
Formal employment is key to this equation. Without it, the pension system’s sustainability becomes a question mark. Jobs that provide pensions, stability, and security should not be a privilege, but a right. For the system to hold, we must consider not just the weeks of contribution, but the very nature of employment in the country.
The Colombian labor market is still heavily informal, with 56.4% of workers not contributing to the system. These are not just numbers—they are lives lived outside the formal structures of support, people with dreams, responsibilities, and futures that look increasingly uncertain.
Gendered Perspective on Pensions: What’s the Real Story?
The story gets more complex when we factor in gender. The pension gap between men and women shifted after the COVID-19 pandemic, a surprising turn where women—long disadvantaged in terms of formal employment—began to contribute at slightly higher rates than men in some sectors. By 2023, the gap narrowed to just 4.2 percentage points, with 58% of men contributing to pensions compared to 55% of women.
But let’s not fool ourselves. Women are still overrepresented in precarious jobs, and their economic vulnerability remains stark. The small progress made can’t hide the deeper truth: when women aren’t able to consistently contribute to pensions, their future security remains at risk. For many, the dream of a comfortable retirement feels distant, if not impossible.
The Road Ahead: Will Reform Be Enough?
The pension reform of 2023 was a first step, but it feels like trying to patch a sinking ship with duct tape. There’s a growing call to adjust retirement age, increase the number of weeks required to contribute, and to address the glaring gaps in the system. But are we asking the right questions? Is this just about numbers, or about building a system that values the humanity of the people it’s meant to serve?
The Labor Observatory of the University of Rosario suggests that we will need to invest as much as 1.9% of the GDP by 2030 to maintain a sustainable healthcare and pension system. But money alone won’t solve this. We need to rethink how we approach retirement, aging, and economic security for all Colombians. The heart of the issue is human: How do we honor the years people have worked and ensure that their contributions lead to a dignified end to their careers?
Human Dignity and Pension Reform: Moral Imperative
When I think of my own parents—one inching closer to retirement and the other already navigating the complexities of pension paperwork—I realize how personal this issue is. It’s not just policy; it’s people’s lives. The current system feels like a bridge built too narrowly, leaving too many people teetering on the edge.
The Colombian pension system needs more than incremental reform; it needs a complete rethink. Not just to address the numbers, but to restore a sense of security and dignity to those who have worked their entire lives. This isn’t just about ensuring that future generations can retire—it’s about ensuring that their contributions aren’t lost in a system that was never truly designed to support them in the first place.
We have the opportunity, right now, to build a system that works for everyone—not just for the 14% of older adults who are lucky enough to still be contributing, but for the millions who will come after them. Pension system reform is not just a matter of economic sustainability, it’s a question of moral responsibility.
Conclusion: Looking Forward with Compassion
As we move forward, we must hold onto a single, powerful truth: pension reform is about more than saving a system—it’s about saving people. It’s about ensuring that no one, whether young or old, man or woman, formal or informal worker, faces their later years with dread. The changes we make today will echo through generations, shaping not just the future of our economy, but the future of how we care for our most vulnerable citizens.
