Uruguay retains private pension funds in its system.
The debate over pension system reform continues in Uruguay following the rejection of the nationalization initiative. Private management companies maintain a key role, while the government reaffirms a hybrid model involving both state and private sector participation.
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Private pension fund managers in Uruguay continue to play a key role in the national social security system. Individual savings accounts will remain protected and managed by the private sector.
Issues concerning the future of the country’s pension system have attracted international attention. Potential changes to the structure of pension funds were among the main topics discussed by investors at recent International Monetary Fund meetings in Washington.
Pension fund managers, known as AFAPs, oversee assets exceeding $25 billion and serve approximately 1.7 million people. These accumulated funds help develop the domestic capital market and allow the government to reduce its reliance on foreign currency borrowing.
Debate over pension reform intensified after the 2024 referendum, in which citizens rejected a proposal to nationalize the pension system—a measure supported by trade unions.
The Social Security Commission under President Yamandú Orsi plans to present official policy recommendations on April 28. These recommendations will form the basis for drafting new pension reform legislation.
The government has reaffirmed its intention to maintain a hybrid model that includes both the state social security agency BPS and private fund managers.