But in the long run, net returns are likely to be positive as assets accumulate and operating costs are better controlled. Effective coverage is quite low. Affiliates represent fewer than 60 percent of eligible workers and only about 40 percent of the labor force. Fewer than 30 percent of eligible workers and only about 20 percent of the labor force actively contribute. Because the new system is young, the number of beneficiaries is small, mostly recipients of survivorship and disability pensions.
Market concentration is high, although lower than in Chile.
Equity holdings' share has been rising, mainly at the expense of bank deposits. Real rates of return average over 15 percent a year, although high commission charges substantially reduce the net real returns to individual workers. But costs are coming down sharply as a percentage of average assets. Net real returns for a worker's full career are expected to be highly positive so long as gross investment returns remain strong. Document no longer available in PDF format.