The administrative cost (sum of net commission and premium) in 2019 ranged between 23% of the deposit in Uruguay and 30% in Peru; Although the Chilean system has been in operation for almost 40 years, its cost is 28% of the deposit. A comparison of the administrative costs before privatization and in 2002 in four Latin American countries showed that they increased between two and ten times, while the comparison of the average administrative costs with respect to the taxable wage in six public and ten private systems in 2001-2005 gave 0.003% and 1.63% respective. It has been shown that for each percentage point of commission charged during the active life of the insured, the amount of the future pension is reduced.
Finally, the administrators have high profits and maintain them mostly during economic crises, while the insured are affected by them because the balance in their individual accounts decreases. In 2019, earnings on equity ranged between 20% and 47% in four countries and between 12% and 16% in another four. During the severe global economic Whatsapp Mobile Number List continued to have utility and exceeded the level prior to that crisis in three countries. In 2019, three administrators had a higher profit than before the crisis. Although the insured are supposedly the “owners” of their individual accounts, they do not participate in their administration as was the case before and continues to be the case in public systems.
On the positive side, the administrators introduced individual accounts, improved the periodic reporting of the accumulated fund to policyholders, and reduced the time to process pensions. In the public systems, the granting of pensions sometimes took years because in most of them there was no updated record of the years of service or of the contributions made by the insured and their employers, and it was often necessary to prove these even in administrative courts. As the individual accounts are up to date, the procedure is very quick and easy: in Chile a provisional estimate is made and the first pension is paid immediately, then it is checked and the whole process takes less than a month. On the other hand, surveys taken in several countries with private pension systems show the null or poor knowledge of the insured about their rights, the main rules of the system and the amount of their accounts.