Argentina and Chile advance pension reform debates

In Argentina, the legislative debate on the pension reform entered its final week of hearings. Lawmakers are considering a reduced calculation period for the initial pension benefit, potentially down to 15 years, and may adjust the retirement age proposals, keeping gender parity out of the final text. The ruling bloc signals willingness to accept limited adjustments on special regimes and other technical points before a committee report expected in July.

In Chile, the government expressed concern that the upcoming pension reform could curb competition among private pension fund administrators (AFPs). Officials highlighted uncertainty over the role of AFPs and the regulator in setting investment benchmarks, warning that a single benchmark could limit innovation. The ministry suggested a more flexible, possibly hybrid, approach to benchmarks and indicated readiness to amend implementation timelines to preserve market dynamism and support broader economic growth.

Both countries are navigating changes to retirement systems that could affect pension calculations, age eligibility, and the functioning of the private pension industry.