Uruguay Rejects Pension Reform in Landmark Vote

Uruguayans voted against a proposed pension system reform in a recent referendum. With 61% rejecting the measure, concerns from investors and politicians over potential economic impacts have been alleviated. The reforms aimed to make pensions more generous and lower the retirement age to 60.

In a recent referendum, Uruguayans made their voices heard by rejecting a proposed overhaul of the country's pension system, according to early exit polls. The measure was struck down by 61% of voters, a decision that has put investors and politicians at ease, dispelling fears that the reform could negatively impact the economy.

The local polling firm Cifra reported that proposed changes aimed to make Uruguay's $22.5 billion private pension system more generous. The rejected plan would have also lowered the retirement age from 65 to 60, a shift that some believed necessary to align with evolving demographics and employment patterns.

By opting against the reform, voters have chosen to maintain the current pension system, preventing significant structural changes. This decision marks a critical point in Uruguay's economic landscape, as stakeholders had been keenly observing the potential ripple effects the reforms could bring.

(With inputs from agencies.)