In this edition of the Pension March, we highlight, among other things:

• Crisis in public pay-as-you-go systems and/or in systems with state administration. In Bolivia, contributors have demanded that other AFPs administer the system to a tender, since one of the virtues of the individually funded system administered by them has been the transparent management of the records of each one of the affiliates, and they fear that the administration through of the Public Manager is not so. In Spain, the European Union has warned the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, that a reform must be given to the public pay-as-you-go system that guarantees its sustainability, or else there will be no aid funds for the country. In Panama, the Executive hopes that viable options will emerge from the Dialogue Table for the Social Security Fund to strengthen the pay-as-you-go program, which is in crisis due to the imminent lack of funds, and that these proposals do not risk the country’s economy.
• United States: At the end of Dec. 2022, a new law (“Secure 2.0 Law”) was signed that will expand retirement savings opportunities by encouraging voluntary pension savings through different behavioral economics mechanisms, such as the automatic enrollment and matching contributions incentives.
• Brazil: In Dec.2022 the State issued the first bond in the world specially designed for retirement, which allows financing a complementary pension for a period of 20 years from the moment of retirement. This innovation was inspired by the work of the 1997 Nobel Prize in Economics, Robert Merton.

Download the full report here.