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FIAP > Boletín – Recientes > Progress of the Pension Systems No. 2 / February – March 2017
2 May, 2017

Progress of the Pension Systems No. 2 / February – March 2017

The following topics are highlighted in this new edition of the Progress of the Pension Systems:

  • New instances for rapprochement and information to members created. In Chile, AFP Habitat published its first public account for members in March, while AFP Cuprum announced the creation of a “Committee of Enrolled Members.” The purpose of these measures is to reach out to members and communicate timely and relevant information regarding the management of the AFP. In Mexico, in turn, the pensions regulator published the annual update of an indicator with more than 36 variables, measuring the efficiency, coverage, offer and promotion of the services of the Afores. It also published a new tool denominated ‘Operational X-ray of the Afores,’ which will enable comparing the operational performance of each fund manager. And finally, workers close to retirement will now be able to select their pensions through a new Life Annuity “Offers Document,” which provides enhanced information for retirement decisions. Meanwhile, in Peru the AFPs will send members over 50 a customized pension projection, between March and May. The Association of AFPs also launched an educational video on the benefits of pension savings.
  • The Citizens’ Initiative for Pensions (ICP) submitted its proposal to the Government for reforming the pension system in El Salvador, concentrating its proposed measures in three areas: (i) Higher returns on savings, requiring the authorization of new investment alternatives and the creation of Multifunds; (ii) More and better benefits for workers, allowing free access to funds under certain conditions; (iii) Sustainability of pensions, through the creation of the “lifetime pension reserve,” which kicks in when the balance of the individual account is exhausted. The retirement age (60 for men and 55 for women) remains unchanged.
  • Crisis of the PAYGO system in Spain. According to the Independent Authority for Fiscal Responsibility, new pensions will be 15% lower from 2026 onwards, due to the cuts in the last two reforms (2011-2013). The reduction will be an almost steady USD 212 as of 2021. Regarding the gender gap, the average pension of women will be 37% less than the average pension of men.

To view previous editions of this report, please visit the following link.

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FIAP > Boletín – Recientes > Progress of the Pension Systems No. 2 / February – March 2017
2 May, 2017

Progress of the Pension Systems No. 2 / February – March 2017

The following topics are highlighted in this new edition of the Progress of the Pension Systems:

  • New instances for rapprochement and information to members created. In Chile, AFP Habitat published its first public account for members in March, while AFP Cuprum announced the creation of a “Committee of Enrolled Members.” The purpose of these measures is to reach out to members and communicate timely and relevant information regarding the management of the AFP. In Mexico, in turn, the pensions regulator published the annual update of an indicator with more than 36 variables, measuring the efficiency, coverage, offer and promotion of the services of the Afores. It also published a new tool denominated ‘Operational X-ray of the Afores,’ which will enable comparing the operational performance of each fund manager. And finally, workers close to retirement will now be able to select their pensions through a new Life Annuity “Offers Document,” which provides enhanced information for retirement decisions. Meanwhile, in Peru the AFPs will send members over 50 a customized pension projection, between March and May. The Association of AFPs also launched an educational video on the benefits of pension savings.
  • The Citizens’ Initiative for Pensions (ICP) submitted its proposal to the Government for reforming the pension system in El Salvador, concentrating its proposed measures in three areas: (i) Higher returns on savings, requiring the authorization of new investment alternatives and the creation of Multifunds; (ii) More and better benefits for workers, allowing free access to funds under certain conditions; (iii) Sustainability of pensions, through the creation of the “lifetime pension reserve,” which kicks in when the balance of the individual account is exhausted. The retirement age (60 for men and 55 for women) remains unchanged.
  • Crisis of the PAYGO system in Spain. According to the Independent Authority for Fiscal Responsibility, new pensions will be 15% lower from 2026 onwards, due to the cuts in the last two reforms (2011-2013). The reduction will be an almost steady USD 212 as of 2021. Regarding the gender gap, the average pension of women will be 37% less than the average pension of men.

To view previous editions of this report, please visit the following link.