‘Repatriación del ahorro pensional representaría esfuerzos fiscales adicionales para la sostenibilidad del sistema’

TL;DR

The Comptroller General warns that reducing foreign investment limits for pension funds could decrease profitability and threaten the pension system's stability.
The proposed decree would progressively reduce foreign investment from 49% to 30% over five years, repatriating approximately $177.8 billion by 2030.
Historically, investments in international markets have yielded higher returns (average 8.5%) compared to domestic investments (average 3.8%).
A million pesos invested internationally since 2011 could have grown to $3,228,356.48, while a domestic-only investment would have reached $1,670,363.09.
This difference in returns could lead to up to a 29.5% reduction in an individual's pension balance.
The State, as guarantor of pensions, may have to cover shortfalls if pension resources yield less, increasing fiscal deficit risk.
Reduced returns from AFP transfers to Colpensiones could worsen the actuarial deficit, requiring more state funds to guarantee pension payments, especially between 2037 and 2052.

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