Pereira signed up with LIV Golf in 2023 and earned just over $11.5 million in three seasons, but he was relegated at the end of this season after finishing 51st in the standings.
Three weeks ago, Pereira's manager told The Associated Press that he had broken his collarbone in a bicycle accident and was waiting to get fit to figure out his next step.
Pereira announced his retirement on Instagram on Wednesday.
"After many years connected to this beautiful sport, priorities naturally evolve," he wrote." "Today, my main desire is to step away from constant travel, return to Chile, and focus on my personal life."
"I spent many years living away from home, in another country, countless weeks in hotels and airports. Now, the time has come to pause. Chile is my place in the world, and my family is my reason for being. Golf taught me resilience, how to navigate both good and difficult moments, and how to make discipline and goals a way of life. I believe I am well prepared for what lies ahead."
Pereira is best known for his near-miss at the 2022 PGA Championship at Southern Hills. He carried a three-shot lead into the final round and held a one-shot advantage standing on the 18th tee, only to take an aggressive line with driver that found a creek. The resulting double bogey handed the title to a grateful Justin Thomas.
Pereira also narrowly missed out on a medal at the Tokyo Olympics, and also represented the International team at the 2022 Presidents Cup.