This document compiles the main changes that occurred in the period “October 16, 2024 –December 6, 2024”, in the pension systems, with emphasis on the development of individual savings programs.
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Approved reforms to social security
- Chile: The Superintendency of Pensions began the process of bidding for a portfolio of new members to the individual savings system for the period 2025-2027.
- Costa Rica: The implementation of Target Date Funds is 80% complete (the new model must be implemented as of April 1).
- Spain:
– On October 22, 2024, a decree was published that makes a series of modifications to encourage the use and facilitate the operation of public employment promotion funds.
– On November 11, 2024, a decree was approved that allows those affected by the DANA to access their pension funds in advance for an amount of up to EUR 10,800.
- USA: Starting in 2025, workers between 60 and 63 years old will be able to make an extraordinary contribution of up to US$11,250, to increase their savings in 401-k plans.
- Mexico:
– On October 25, 2024, the regulator published adjustments to the Siefores investment regime, highlighting that the investment limit in structured instruments will increase from 20% to 30% of managed assets.
– On October 30, 2024, Congress approved a constitutional amendment that reduces the age to obtain the non-contributory universal old-age pension (from 68 to 65 years).
– On November 29, 2024, the pension regulator determined that the maximum to which the commissions charged by the Afores will be subject for the year 2025 will be 0.55% of the managed funds.
- Panama: On November 6, 2024, the Executive presented a bill that reforms the organic law of the Social Security Fund (CSS; pay- as-you-go system), which among other things increases the retirement age (62 – 65 Men / 57 – 60 Women), increases the employer’s contribution rate (from 12.25% to 15.25%) and creates a universal basic pension.
- Peru: The pension regulator called for the seventh tender for new affiliates to the individual savings system. The AFP that wins this tender will assume the affiliation of new workers who join between 01.06.2025 and 31.05.2027 (the value of the fee as a % of the AUM of the winning AFP must be less than 0.78% per year).
- Uruguay: On October 27, 2024, a proposal to reform the country’s pension system (eliminating the AFPs and lowering the retirement age from 65 to 60 years) was rejected in a plebiscite, with 60% of voters against it.
- Vietnam: In June 2024, it was approved that, starting in July 2025, the retirement age for men (from 61 to 62) and women (from 56 to 4m to 60) will be gradually increased.
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