DR1 Daily News - Dominican Republic

Dominican Republic’s private pension fund administrators (AFPs) are under fire for generating RD$8.7 billion annually in commissions while retirees face low pension payouts. As of May 2025, the accumulated individual capitalization accounts reached over RD$1.16 trillion. AFPs charge a 0.75% annual commission on this balance, earning significant profits without assuming financial risk or guaranteeing returns, El Dia reports.

Critics argue that the system has become overly commercialized. Analysts Matías Bosch and Francisco Tavárez highlight that AFP profits increase during recessions due to expanded government credit demand for public spending.

Seven private AFPs dominate the market, holding 92.16% of pension contributors and 79.38% of pension fund assets (RD1.1trillion) as of December 2024. These AFPs have cumulatively received over RD19 billion in commissions. Total AFP profits, including...