The Universal Guaranteed Pension (PGU) in Chile is a monthly state benefit for older adults. Its objective is to improve the income of older people who do not have sufficient income during this stage of their life. The PGU provides a fixed amount of $214,296 per month to those who meet the requirements
When will the PGU be readjusted?
The Universal Guaranteed Pension (PGU), implemented to guarantee a minimum income for people over 65 years of age in Chile, is not readjust automatically in October. Although there may be some expectation among beneficiaries regarding an increase, the reality is that the PGU is readjusted annually in the month of February. This readjustment is based on the variation in the Consumer Price Index (CPI), so the amount changes each year depending on inflation. The readjustment is automatic and does not require any additional procedures on the part of the beneficiaries.
What is the current amount of the PGU?
He amount The current Universal Guaranteed Pension is $214,296 for those who have a base pension less than or equal to $729,764. However, for those whose base pension is between $729,765 and $1,158,355, the PGU amount will be lower and will be calculated proportionally. This means that the total amount a person receives may vary depending on the self-financed pension they receive from their AFP or other pensions.
Who can access the PGU?
To access the PGUit is necessary to meet certain requirements. The first is to be 65 years old or older. Additionally, the applicant must not belong to the richest 10% of the population, which is determined through the Social Household Registry. It is also necessary to prove residence in Chile, complying with at least 20 years of residence, continuous or discontinuous, since the age of 20, and at least four years of residence in the last five years immediately preceding the application for the benefit.
Other requirement is that the applicant’s base pension must be less than $1,158,355. This amount is calculated considering the Self-Financed Pension (PAFE), which is determined by the AFP, along with other pensions that the person may receive. In this way, the PGU is intended to support those who, despite having contributed during their working life, have not achieved a pension sufficient to cover their needs.
