In this Pension Note:

(i) The current Colombian pension system is described.

(ii) Its main problems are analyzed, such as:

1. Its low coverage (only 1 out of 3 workers contributes and 3 out of 4 workers cannot retire because they do not meet the minimum requirement of years of contributions).
2. The inequality of treatment between members of private pension funds (AFP) and members of Colpensiones (pay-as-you-go system).
3. Its regressivity (the State provides high subsidies for the pension of the richest).

(iii) Various proposals are presented to solve said problems and thus improve the pension system.

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