At the end of September, the National Association of Pension Savings Fund Managers (ANAFAP) published the report “Voluntary Pension Savings – an opportunity for improving the Uruguayan social security system,” which puts forward a series of proposals for promoting the development of Voluntary Pension Savings in Uruguay, based on successful initiatives in the region and the analysis of the regulatory and operational framework governing voluntary savings.

Some of the more important suggestions put forward in the report include:

1. Fostering greater financial culture, multiplying programs such as “BCU Educates” in other government agencies, and interacting with private institutions.
2. Facilitating the use of existing channels and new technologies for encouraging voluntary saving, such as collection and payment agencies, cell phone applications and electronic transfers.
3. Authorizing automatic enrollments of workers, with opt-out choices, and the possibility of periodically enrolling workers.
4. Making the system more flexible by allowing partial or total withdrawals from the pension savings balance corresponding to voluntary savings, for spending on housing, education or health.
5. Strengthening the government’s commitment to tax incentives: simplifying voluntary savings tax exemptions in the tax returns of individuals and evaluating new tax incentives for companies, especially for contributions paid in for low-income workers.

To review the report in detail, please download it here. (only the Spanish version available).