A report in Diario Libre on Friday, 11 May 2018, highlights that a person making RD$12,000 a month when retiring will only have saved enough to receive RD$4,000 a month in pension funds. This in comparison to the wealthy Pension Fund Management Companies (AFPs) that in 2017 reported earnings of more than RD$4.6 billion a year.
Economist Airon Fernández and sociologist Matías Bosch Carcuro conducted research into the system (Radiografia del Sistema de Administración de Fondos de Pensiones) and said that the pension plans earnings is six times more than the yield made by the workers paying into the system. Accumulated earnings from 2004 to 2017 for the companies is more than RD$31.12 billion.
The experts say that as time goes by the pull of the pension plan management companies is greater. While in 2007 the pension funds represented 2.3% of the GDP, by 2017 these now represent 11.3%, or an increase of 400%.
Making matters worse, 74% of the RD$304.84 billion in the pension plans is deposited in public entities.
Read more in Spanish:
Diario Libre
15 May 2018
