Going from the ONP to the AFP would only benefit 7.4% of affiliates

Although the recognition bond proposal has not yet been promulgated, its approval at the insistence of the Congress of the Republic confirms that it will be given at any time. There are almost a million and a half affiliates (between contributors and exporters) to the national system, between 30 and 39 years of age, who have strong incentives to transfer to the private system and thus access this benefit, according to the Pension Standardization Office (ONP).

For Noelia Bernal, professor of Economics at the Universidad del Pacífico, the recognition bonus will not be very well received among current affiliates, following the trend of previous bonuses (1992, 1996 and 2001). But, taking into account that by 2022, 30% of affiliates are between 30 and 39 years old, and have a horizon of around 20 years to continue contributing, it is worth asking who the transfer is convenient for [ver infografía].

“The current population of the national system, on average, earns S/1,000, S/1,200 with luck; So, it would not be convenient for them to switch to the AFPs, because, with this salary and the frequency of contributions, the pension that they would self-finance will be very low, less than the S/500 that they could receive in the national system,” explains the economist. .

On the other hand, those who could benefit from this measure are those workers who earn more than S/2,500 and who contribute regularly, which indicates that they would have a future pension greater than the maximum limit in the national system, which is S/893. , according to Bernal. He adds that it should be considered that nominal profitability today is very low.

It should be noted that only 2.5% of those affiliated with the national system earn between S/2,500 and S/3,000, which added to other workers who earn up to S/5,000 are 115,778, that is, 7.4% of the total. While 58.7% earn up to S/1,000.

For his part, the economist Javier Olivera affirms that in general all affiliates who choose to switch to the private system must take into account that in practice this is a savings system and that it does not guarantee them a pension for the future.

“Right now, the ONP, for 10 years of contributions, gives you a pension of S/250; for 15 years, S/350; and for 20 years he gives a pension of S/500. In general, it would be convenient for you to have your pension in the national system because you are not really paying much for the pension that you are going to receive”, Olivera points out.

A reform of the pension system is urgently needed

The specialists consulted agree that work must be done on a reform of the current pension system.

“We are, together with Colombia, the only countries in the world that have this crazy pension system, where workers without knowing well have to choose between the ONP or the AFP”, says Bernal.

For the specialist, there is an unnecessary complexity that has been added to the many decisions that citizens face every day. While Olivera stresses that the discussion of a new reform has been taking place for some years, but it is time for the Executive to make it a reality.

Today, from the Government and Congress has been discussing this issue with particular interest without yet reaching a successful conclusion.

Growing trend towards migration

The main component that explains the dynamics of ONP departures is migration to the SPP, which means more than 81% of total departures, followed by the reason for retirement and death, according to the ONP statistical bulletin.

From the first quarter of 2010 to the third quarter of 2012, the average number of people migrated to the SPP on a monthly basis it was 16,000.

By 2021, departures for this reason stood at more than 20,000 per month. The figures reveal a growing trend in the rate of migration to the private system.