FIAP

Informativo FIAP

FIAP > Boletín – Recientes > Progress of the Pension Systems No.6 2019 / October – November 2019

Progress of the Pension Systems No.6 2019 / October – November 2019

7 February, 2020
  • Crisis in PAYGO systems worldwide. In Argentina, Banco Nación and ANSES will provide USD 546 million for the government to pay public debt maturities, including Treasury Bills in pesos, which will be subscribed by the Sustainability Guarantee Fund (FGS). In Spain, the balance of the Social Security Reserve Fund will be reduced to EUR 1.5 billion after the withdrawal of EUR 3,598 million to guarantee the payment of pensions in December.
  • Retirement age rising. A  Group of 30 Report (G30) proposed raising the retirement age in 21 countries with leading economies by at least 4 to 6 years by 2050, in order to address the deficit in the financing of the pension systems due to population aging. In Saudi Arabia, the government increased the official retirement age for women in the public PAYGO system from 55 to 60, equaling the retirement age of men. In Singapore the minimum retirement age will increase from 62 to 63 (and gradually to 65 by 2030) as of July 1, 2022, for workers covered by the Central Pension Fund. In Brazil, Congress enacted the pension system reform law which established  minimum retirement ages of 62 for women and 65 for men (there was previously no minimum retirement age).
  • Warning on pensions for self-employed workers. The OECD Study, “Pensions at a Glance 2019,” emphasizes the fact that governments should reform their pension systems to ensure that workers in non-standard jobs (self-employed, temporary or part-time) contribute enough to receive adequate pensions.
  • New defined-contribution complementary pension programs. In France, the government introduced three new complementary savings plans (PER), with a maximum contribution of up to 10% of taxable salary. In Ireland, on the other hand, a new pension program was approved, with automatic enrollment and an initial maximum contribution rate of 1.5% of salary for 3 years, increasing by 1.5 pp every three years, to a maximum of 6% in year 10.
  • In Germany, the government agreed to increase the basic pension for low-income retirees, ensuring that they will receive enough money to cover more than just basic living costs, as of January 2021.
  • In Peru, the Banking, Insurance and AFPs Commission (SBS) established the reverse mortgage operating and accounting system, which will benefit retirees by complementing their pensions.

To download this Pensions Progress Report, please click on this link.

See all newsletters
Suscribe to the Fiap International Newsletter Sign up here