COLOMBIA Law and Practice Contributed by: Rodrigo Castillo Cottin, Ana María López and Alejandra Becerra, Rimon, P.C.
8.3 Planning for Incapacity In Colombia, Law 1996 of 2019 provides a supported decision-making framework that enables individuals to plan in advance for potential loss of capacity. The principal voluntary mechanisms are: • Support agreements – these allow designation of one or more persons to assist in specific legal acts, formalised before a notary or conciliation centre (Decree 1429 of 2020). • Advance directives – these allow the individual to set out their wishes and preferences regarding future legal acts, executed by public deed or con - ciliation agreement. • Powers of attorney – these may be used for patrimonial, corporate or contractual matters, but must be co-ordinated with the support regime, as representation requires an express mandate for specific acts. In practice, these instruments are used to anticipate who may assist or represent the individual in legal, patrimonial, corporate, banking or tax decisions, pre - serving the individual’s autonomy and reducing the risk of disputes with third parties or family members. 8.4 Elder Law In response to demographic trends and structural coverage gaps, Colombia enacted a major pension reform under Law 2381 of 2024, scheduled to take effect on 1 July 2025. This reform, one of the few major legislative initiatives successfully passed by the current administration, emerged from a process of public consultation led by the Comisión de Reforma de Protección a la Vejez , and seeks to promote equity and long-term sustainability in the national pension system. The New System of Social Protection for Old Age The law introduces a four-pillar model under the new System of Social Protection for Old Age, aiming to expand coverage, address gender disparities, and provide more flexible retirement pathways. 1. Solidarity pillar This component is designed to support elderly indi - viduals living in poverty or vulnerability who are not eli - gible for a pension. It grants a Solidarity Basic Income,
a non-pension benefit adjusted annually based on Colombia’s CPI. Eligibility depends on age, national - ity, residency, and socio-economic status, with special provisions for individuals with disabilities. While mod - est in value, this transfer plays a vital role in preventing extreme poverty among older adults. 2. Semi-contributory pillar Targeting individuals who contributed to the pension system but did not meet the minimum requirements, this pillar grants a Lifelong Annuity, financed partly by state subsidies. While not inheritable, the annuity is meant to provide a stable post-retirement income. Women receive a higher state contribution (30% v 20% for men), reflecting policy efforts to address gender-based inequities. 3. Contributory pillar This is the core of the reform and applies to all formal workers. It adopts a hybrid model: contributions on earnings up to 2.3 monthly minimum wages (approxi - mately USD1,183 for 2026) go to “ Colpensiones ”, the public fund, while any excess is managed by private pension funds. The two components are integrated to form a unified pension. This design shifts part of the pension flow from private to public hands and changes the long-term dynamics of pension fund management. 4. Voluntary savings pillar This final pillar remains unchanged and allows individ - uals to make additional contributions to supplement their retirement savings. Transition Measures To safeguard acquired rights, the law includes a tran - sition regime: individuals close to retirement – that is, women with 750+ weeks and men with 900+ weeks of contributions by 1 July 2025, will remain under the previous legal framework. Additional provisions for women include a 50-week credit per child (up to three) and a gradual reduction of the contribution require - ment to 1,000 weeks by 2036. Legal Challenges and Institutional Uncertainty Despite its scheduled implementation, the law’s future remains uncertain. Several constitutional claims have
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