Apr 04, 2022
In Welcome to the Forum
This utility was maintained or grew during the 2007-2008 crisis. Policyholders are supposed to be the “owners” of their individual accounts, but they do not participate in its management as in public systems. e) Contrary to promises that individual account ownership and private management would be incentives for timely payment of contributions, the proportion of members who contribute has drastically decreased in all countries. Confirming a promise of the reform, the capital accumulated in the fund has grown notably and also as a percentage of GDP (although with falls during the 2007-2008 and 2020 crises); administrators control a very high percentage of gdp, which gives them great power. Although there has been diversification in the composition of the portfolio in the larger countries, it continues to be concentrated in state debt, foreign investment and bank deposits; nothing or little is placed in national actions (despite the Whatsapp Mobile Number List benefit the most from the reform). The real gross return on investment was initially high, but in 2007-2008 it fell in seven countries, and although it grew with the recovery in 2009-2019, it had not recovered the initial level or was static in seven nations, which affects the amount future of pensions. Voluntary saving has not been successful and there is a growing tendency to authorize large withdrawals of funds before retirement. The above results augur new reforms in Latin America. The Chilean government has submitted to Parliament another reform of its private system; Mexico's has sent to Congress a re-reform proposal that maintains the private system, but with important changes; a commission of the Congress of Peru is concluding a re-reform based on the mixed model; and there are several re-reform proposals in Colombia to integrate its two systems. We hope that the evaluation made here will be useful for any type of reform that is undertaken in the region.