Retirement is one of the most anticipated stages for a worker, since after years of great effort they will be able to take advantage of their pension fund, money that he contributed during his work period. This amount is usually administered and paid to contributors according to the ages established by each country: for example, 67 years for USA and 65 for Peru.
In this sense, the Mercer CFA Institute Global Pension Index revealed, in its latest report of 2023, which are the South American countries with the best and worst pension system, taking into account factors such as suitability, sustainability and integrity. In what position are nations like Peru and Chile?
Mercer classified the retirements in South America. Photo: The Republic
Which country in South America has the best pension system?
According to the report of Mercer, the country of South America The country with the best pension system is Chile, with an overall score of 69.9, 70 for suitability, 71.3 for sustainability and 84 for integrity. In this way, it is not only ranked first in the region, but also rubs shoulders with countries such as Canada o Belgium.
To know the situation of the pension system in ChileMercer analyzed how effective this country’s pension system is, highlighting its growth in integrity levels, which increased from 78.9 to 84.0 points compared to the 2022 results.
Chile’s pension system is the best in Latin America. It is even comparable to some countries in Europe. Photo: Mercer
Some of the recommendations that the report suggests to improve the pension system is to increase the minimum level of support for the poorest adults, as well as the retirement age for women. On the other hand, it is proposed to include an extra income for those who take care of children.
It is important to specify that Chile It was the first country in Latin America to establish a pension system. This began in 1924, when it implemented the pay-as-you-go modality, a system that was administered by pension funds, which established the conditions and coverage of membership. However, this changed in 1980, when the AFP system o Individual capitalization system (Law 3,500). Unlike the previous one, this one is individual; That is, each worker pays for his or her pension.
Chile’s pension system has improved in Mercer’s ranking. Photo: AFP
What are pensions like in Peru?
Peru It is in fifth position at the regional level and in 34th place in the global ranking. The value decreased slightly compared to the data obtained in 2022, from 55.8 to 55.5. This represents a constant decrease, since in 2018 it was 62.4.
The pension system in Peru is divided into two groups: the public defined benefit (DB) system, pay-as-you-go, and a defined contribution (DC) system, fully financed and administered by the private sector.
Peru’s pension system has reflected a decline in recent years. Photo: Mercer
Pension ranking in Latin America
2024-02-10 07:29:42
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