Overview

• The Executive promulgated a law on Saturday authorizing an extraordinary, voluntary withdrawal of up to four UIT from AFP accounts.
• Total AFP assets have fallen from about S/175,000 million before the pandemic to roughly S/115,000 million, with estimates pointing near S/90,000 million after this withdrawal.
• By mid‑2025, seven of every eight affiliates held less than one UIT in their accounts, and over 90% of retirees choose lump‑sum withdrawals instead of annuities.
• Only a little over three million people contribute to AFPs—less than 20% of the labor force—while informality above 70% keeps coverage limited.
• Opinion writers propose mandatory minimum saving or split‑contribution models and caution that continued erosion could steer Peru toward a pay‑as‑you‑go scheme, as financial advisers urge using withdrawals to retire costly debt or build an emergency fund.