Uruguay proposes early retirement at age 60

The Uruguayan government, led by President Yamandú Orsi, has approved a bill to be sent to Parliament that would allow citizens to retire early at age 60, provided they have at least 30 years of contributions. While the general retirement age remains 65, this new option aims to provide flexibility for workers facing physical exhaustion or technological shifts in the labor market.

According to Presidency Secretary Alejandro Sánchez, the initiative prioritizes low-income workers. Approximately 30% of the lowest-earning retirees could access this option under conditions equal to or better than those existing before the 2023 pension reform (Law 20.130). To encourage continued labor participation, the scheme includes economic incentives for those who choose to delay retirement until age 65, resulting in higher pension amounts.

One key restriction of the proposal is that those who opt for early retirement at 60 will not be permitted to formally re-enter the labor market. The government maintains that this measure is designed for those who no longer wish or are unable to work, and asserts that the plan will not undermine the sustainability of the social security system.