Colombia approves pension reform to support elderly coffee growers amid sustainability concerns
The reform targets older farmers who do not currently receive a pension, many of whom have spent decades outside the formal retirement system
BOGOTA, April, 18, 2026 — Colombia’s Congress has approved a sweeping pension reform aimed at supporting elderly coffee growers, with eligible beneficiaries set to receive a monthly stipend of about COP 223,000 [approximately US$ 55].
The reform targets older farmers who do not currently receive a pension, many of whom have spent decades outside the formal retirement system. However, concerns have emerged that the new structure could place a heavier burden on younger coffee growers who are contributing to the scheme. The bill, which has passed four legislative debates, now awaits review by the country’s Constitutional Court.
Under the proposals, the retirement age remains unchanged at 57 for women and 62 for men. This aligns closely with the average age of coffee growers, many of whom have never contributed to the national pension system.
According to the International Monetary Fund, the reform aims to expand pension coverage to nearly all individuals of retirement age. It also introduces a major shift in contributions, with around 80% of future payments directed towards public schemes rather than private funds.
For low-income citizens aged 65 and above without adequate pension coverage, the reform guarantees a basic income equivalent to the “extreme poverty line” — a significant increase from the current solidarity pension of COP 80,000. Those who have contributed partially but fall short of the required number of weeks will be eligible for reduced benefits, supplemented by solidarity payments.
The legislation requires workers to contribute to a state pension fund on earnings up to three times the monthly minimum wage. Income above that threshold will be channelled into individual defined-contribution accounts managed by private pension firms. While most eligibility conditions remain unchanged, women with children will benefit from a reduction in the minimum contribution period by up to 150 weeks, depending on the number of children.
Despite its potential to improve incomes among elderly farmers, analysts have raised concerns about the long-term sustainability of the model. Critics warn that the reform could increase financial pressure on younger Colombians — particularly those in the coffee sector — while also weakening private pension schemes, a key pillar of the country’s financial system.
https://thecooperator.news/colombian-farmers-find-stability-in-shifting-from-coca-to-coffee/
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