Chile pension reform: PGU increase and AFP Capital's investment proposal

The Instituto de Previsión Social (IPS) announced that, one month before the universal guaranteed pension (PGU) increase takes effect, seniors aged 75 or older who are not yet receiving the benefit must submit an application. The monthly amount will rise to 250,275 Chilean pesos for current beneficiaries automatically, while new applicants must meet criteria such as an updated Registro Social de Hogares, not belonging to the top 10% of earners, at least 20 years of residence (including four of the last five years), and a base pension of 1,252,602 pesos or less. Applications can be made remotely through ChileAtiende, via video, or in person at any of the 202 service points.

Separately, AFP Capital presented observations to the Superintendencia de Pensiones on the proposed investment regime for generational funds. General manager Renzo Vercelli and investment vice‑president Francisco Guzmán argued for adjustments to improve returns and reduce risk, citing concerns about band limits and flexibility. They highlighted that funds A and B performed best in the first seven months of the year, while funds D and E faced tougher conditions, noting market influences from the Middle East conflict, U.S. Federal Reserve decisions, AI sector trends, local inflation, interest rates, and exchange‑rate movements. The firm urged a long‑term, diversified investment strategy to boost future pensions.