Financial Sector Dimensions of the Colombian Pension System
This paper provides an assessment of the funded pension system and the quality of the regulatory framework for both accumulation and payout phase. It suggests that the lack of portfolio diversification may contribute in the future to low returns an...
| Main Authors: | , , , |
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| Format: | Publication |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/01/8100922/financial-sector-dimensions-colombian-pension-system http://hdl.handle.net/10986/6785 |
| Summary: | This paper provides an assessment of the
funded pension system and the quality of the regulatory
framework for both accumulation and payout phase. It
suggests that the lack of portfolio diversification may
contribute in the future to low returns and poor pensions
and provides a number of recommendations to expand the
opportunities of investments to pension funds. The paper
also finds that pension fund administrators are not
exploiting the scale economies in certain areas of the
business such as collection of revenues and account
management, and propose mechanisms to reduce costs and
increase efficiency through greater competition. The paper
examines the products and options offered at the retirement
age, and finds a bias toward the payment of pensions in the
form of lump sums and suggests alternatives for improving
the availability of other instruments. Enhancements in the
regulatory framework of insurance companies are also proposed. |
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