The president of the International Federation of Investment Fund Administrators pensions (FIAP), Guillermo Arthur, argued yesterday that the pensions of Latin America and the Caribbean face one of the most prolific challenges in history: the disinformation generated by a populist culture that is causing confusion on a relevant issue for economies such as mutual funds. pensions.
When talking about the yields in the XIX International Seminar FIAP, exposed examples of fake news that put workers in a situation of uncertainty.
“Among the merits that the countries of the region have achieved with the systems for retirement funds are the contributions made to the economies, with which the economic growth of the region has been sustained,” he pointed.
In addition, he stressed that the region has “individual capitalization systems that provide sustainability to pension systems, which, for demographic reasons, distribution mechanisms had lost.” For this reason, he highlighted, by 2022, 46 countries that previously had pay-as-you-go systems will have incorporated individual capitalization mechanisms into their pay-as-you-go systems. pensionswhile in 1997 the figure was just 17.
Arthur indicated that the disinformationfake news and populism worry representatives of the media sector pensions for its negative impact on society.
Challenges in the DR
the system pensions The Dominican Republic, despite being part of the growth engine of the Dominican economy, has lacked comprehensive reform for years to improve access and economic benefits for contributors, who earn low wages in the face of rising inflation.
Improving it requires joint planning between the government, the private sector and the Fund Administrators. pensions (AFP), raised during the event the Vice President of the Republic, Raquel Peña.
He considered that raising the economic income of the contributors will promote an essential part of the improvement of social security, especially to increase the funds of the Individual Capitalization Accounts, so that the workers can have a decent fund.
wages and education
Peña assured that the government is contemplating the issue of pensions in his plan to reform social security, which would be strengthened when wages are improved, thus providing a savings capacity to workers that allows them to increase the amount of their pension.
“The systems of pensions they represent a fundamental piece for the social protection policy established by the States with resources contributed by the affiliates, and properly invested so that they can represent a true protection for the affiliates”, he argued.
The official emphasized that the Dominican Republic has the challenge of educating and informing the population that is unaware of the functions of the AFP and the investment instruments in which they invest the funds’ money.
He stressed that, after 21 years of having a system of pensionsthe country, like others in the Latin American and Caribbean region, is undergoing a series of changes, which represent new challenges in terms of social protection and comprehensive health.
Speaking his words at the seminar “Challenges and solutions for pensions of today and tomorrow”, he asserted that among the global challenges faced by pensions the necessary contribution rates are found to be able to pay pensions fair conditions and levels of informality in labor markets.
