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OECD Reviews of Pension Systems: Peru

image of OECD Reviews of Pension Systems: Peru

This review assesses Peru’s pension system in its entirety, looking at both public and private, pay-as-you-go (PAYG) financed and funded pension provisions. The review then provides policy options to help tackle old-age poverty; establish a solid framework for the contributory pension system to meet its objectives; improve the coverage and level of pensions; and optimise the design and improve the regulation of the funded private pension component. A further goal of these proposals is to improve the Peruvian population’s trust that the country’s pension system will be able to deliver secure retirement income in old age.

The review is the fifth in a series of country reviews of pension systems [Ireland (2014), Mexico (2016), Latvia (2018), and Portugal (2019)]. These reviews provide countries with policy options that will help them improve the functioning of their overall pension system. Tailored policy options are proposed based on the specificities of the national pension system, and on international best practices regarding reforms, design and regulation of pension systems.

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Trust and confidence in the pension system

This chapter addresses the pervading lack of trust and confidence in the pension system. It concludes that low levels of understanding of the system and a mistrust of the institutions managing the system are at fault. Policy options discussed to improve understanding and trust include measures to increase financial education, to better align the accountability of both the private and public institutions with their responsibilities and to have an integrated regulation and supervision of the entire system.

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