Santo Domingo.– The pension funds of Dominican workers reached RD$1.3 trillion, a figure equivalent to nearly 17% of the Gross Domestic Product (GDP), according to data released by the Superintendency of Pensions (SIPEN). However, the country continues to be among the Latin American nations with the lowest levels of contributions to the pension system.
Currently, of the 9.97% of the salary allocated to retirement savings, the worker contributes 2.87%, while the employer contributes 7.10%. An analysis by the International Association of Pension Funds Supervisory Bodies (AIOS), which compares the Dominican Republic with other countries in the region, places the country among those that allocate the fewest resources to pensions.
One of the main factors limiting the growth of pension savings is the income level of the working population. Data from the social security system show that more than half of the employed work in the informal sector, while nearly 69% of formal employees earn RD$30,000 or less per month, which reduces the amount accumulated for retirement.
The resources managed by the system also fund other coverages. Of the collections made by the Social Security Treasury (TSS), 48.49% is allocated to Old Age, Disability and Survivorship Insurance, 46.68% to Family Health Insurance, and 4.83% to Occupational Risk Insurance.
We recommend reading: Attorney General’s Office activates pension plan for prosecutors over 60 years old and with 25 years of service
SIPEN also warns that the aging of the population represents one of the main challenges for the sustainability of the pension system. The reduction in the birth rate and the increase in the older adult population will force the country to debate reforms that guarantee the viability of the pension model in the coming decades.
Regarding the administration of resources, the agency highlights that funds continue to be concentrated mostly in fixed-income instruments, although in recent years there has been greater diversification towards other investment assets. Likewise, the Dominican Republic maintains one of the best real returns in the region, with an annualized yield of 2.9% over the last five years and 5.1% between June 2024 and June 2025.
