Uruguay Guidelines from upcoming pension reform

Research evidence excerpt

Uruguay Guidelines from upcoming pension reform

Lucila Barbeito Latin America Economic Research J P M O R G A N(54-11) 4348-7229 27 July 2026

lucila.barbeito@jpmorgan.com

Table 1: Changes proposed

Promote integrated, timely pension advice that consolidates the pay‑as‑you‑go and individual savings pillars

Gradual centralization of information systems under appropriate governance, with AGESIC support, quality + interoperability standards, equal access

Enable affiliates to receive advice from either the relevant social security entity or their AFAP (per preference)

Create a single-window process (“ventanilla única”) for retirement procedures at the relevant social security entity, reducing duplicated steps

Allow AFAP choice procedures to be carried out at the AFAP or at the relevant social security entity

Centralization measures

Allocate new entrants to AFAPs via a competitive/tender mechanism rewarding higher profitability and lower proposed commissions; allow later free choice/switching

Design the competitive allocation mechanism to avoid excessive market concentration

Evaluate centralized contracting of disability-and-survivor insurance and, where feasible, tender the insurance

Remove differences in insurance costs faced by affiliates

Gradually expand eligible assets (including foreign assets) with strict regulation and supervision

Implement investment changes gradually to protect domestic capital market functioning and AFAPs’ role in local investment and local-currency public debt

Market-oriented

Better tailor each AFAP sub-fund to its investment horizon, balancing risk and liquidity needs

Allow regulated use of hedging instruments

Migrate from contribution-based fees to AUM-based fees, with design to address prolonged unemployment periods