FIAP > Boletín – Recientes > PENSION NOTES – No.50 2020 MERCER CFA World Pension Index: The impact of Covid-19 on pensions
18 February, 2021
PENSION NOTES – No.50 2020 MERCER CFA World Pension Index: The impact of Covid-19 on pensions
This Pensions Note analyzes the results of the Latin American pension systems and the reforms or improvements that they require, in light of the results of the MERCER CFA 2020 World Pension Index. The Index shows that Latin America has significant challenges in pension matters. Chile occupies the thirteenth global position with 67 points out of 100 possible, and is among the countries in category B. Further behind in category C are Colombia in 21st position, with 58.5 points; Peru in 24th position, with 57.2 points; and Brazil in 26th position, with 54.5 points. And in category D are Mexico (position 35, with 44.7 points) and Argentina (penultimate place, with only 42.5 points).
The note describes the cases of countries that have allowed the early withdrawal of pension funds to provide additional funds to their inhabitants in the face of the Covid-19 contingency. Faced with this measure, the International Organization of Pension Supervisors (IOPS) points out that “early access to pension savings must be limited, temporary and proportionate to real needs”, while the Organization for Economic Cooperation and Development (OECD) indicates that “access to retirement savings should remain an exceptional measure based on specific individual circumstances and on the regulations that already exist for that purpose”.
It is important to note that the two best-evaluated pension systems in the index, the Netherlands and Denmark, have not allowed early access to pension funds, despite the fact that the assets of each of these pension systems are equivalent to more than 150% of the country’s GDP.
