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FIAP > Boletín – Recientes > Pension Note No.75 – Performance of the Latin American pension funds in 2022 / October 2023
22 November, 2023

Pension Note No.75 – Performance of the Latin American pension funds in 2022 / October 2023

This document provides relevant pension system statistics for 2022, related to variables such as contributors, coverage, pension funds and investment portfolio.

  • Contributors: The positive regional contributor growth over the last 12 years resumed in 2022, increasing by 1.7 million between 2021 and 2022 (a 3.87% increase). This upward trend had been interrupted in the year of the COVID-19 health emergency, in which a 3.6% drop was recorded. This general positive trend was repeated in each country, with numbers of contributors increasing in all of them, Peru being the most notable case with an increase of 8.65%, thus reversing its 7.1% drop during the year of the pandemic.


  • Coverage: This variable, measured as the ratio between enrolled members or contributors and the Economically Active Population (EAP), has continued its upward trend in the last 12 years. Coverage, measured as enrolled members vs EAP, increased by 1.3 percentage points (pp) between 2021 and 2022, from 95% to 96.3%, whereas coverage, measured as the number of contributors vs EAP, also increased by 0.5 pp (from 33.9% in 2021 to 34.4% in 2022). Chile and the Dominican Republic obtained negative variations between 2021 and 2022. This indicator dropped the most in Chile, with a negative variation of 2.1 pp. There were no significant variations in Mexico and Panama. Finally, the countries with positive variations were El Salvador, Colombia, Costa Rica, Peru and Uruguay, the latter having the highest increase of 2.1 pp.


  • Pension funds: Total funds dropped slightly from USD 624,456 million to USD 623,850 million in 2021 and 2022. Funds as a proportion of GDP also dropped by 2.1 pp, from 25.1% to 23% of GDP. Three factors explain the drop in the level of managed funds: (i) the early fund withdrawal policies in Chile and Peru, which led to the global disbursement of USD 71,359 million by the end of 2022; (ii) the drop in the real average annual returns of the pension funds (despite which their long-term values since the beginning of the systems are still around 6.7%); and (iii) the depreciation of local currencies with respect to the US dollar, especially in Chile, Colombia and Peru.


  • Investment portfolio: As in previous years, the weighted average share of pension funds by economic sector for 2022 is still dominated by the Government sector, followed by the Foreign sector, with 39.52% and 27.54%, respectively. There were increases in the government, foreign and financial sector figures, compared to 2021. The average share of the corporate sector, on the other hand, dropped by 6 pp.



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