The Universal Guaranteed Pension (PGU) is a benefit implemented in Chile to improve the quality of life of the elderly, especially those with low or no pensions. Since its creation, it has been an important help both for those who do not have savings in the AFPs and for those who need to supplement their pension. The current maximum amount granted by the PGU is $214,296, however, not all beneficiaries receive that amount.
One of the main reasons why some beneficiaries do not receive the total amount of the PGU is your base pension. Those who have a base pension less than or equal to $729,764 are those who can receive the full amount. However, if the base pension is between $729,765 and $1,158,355, the benefit is reduced proportionally. This means that the amount awarded by the PGU will be less than $214,296, depending on how close the base pension is to the upper limit.
On the other hand, people who have a base pension equal to or greater than $1,158,356 are not eligible to receive the PGU. However, this situation could change after the PGU readjustment scheduled for February 2025, when both the amount of the benefit and the eligibility criteria could be adjusted.
Although the PGU It is a long-term benefit, there are some situations in which it can be suspended or extinguished. For example, if a beneficiary does not collect the PGU for six consecutive months, there is a risk of losing the benefit. Furthermore, if the information requested by the Social Security Institute (IPS) is not submitted within three months, the payment could also be suspended.
The PGU It can also be extinguished in specific cases. One of them is the death of the beneficiary, in which case the payment is made only until the last day of the month of death. Another reason is the stay outside the country for more than 180 days, continuously or discontinuously, in the same calendar year. Additionally, the benefit is lost if it is discovered that false background information was provided or if the person becomes a member of the richest 10% of the population.
