The Dominican Republic's Pensions Superintendency published an account of Superintendent Francisco A. Torres’ interview outlining how planned generational pension funds will tailor investment risk to members’ ages. Younger workers would hold higher-risk portfolios to seek stronger long-term returns, while those approaching retirement would move into more conservative portfolios focused on liquidity and capital protection. The model advances the authority’s previously articulated move toward life-cycle investing and is intended to avoid the poorly timed investment choices associated with member-directed multifund systems. Torres reported that Pension Fund Administrators have generated average historical nominal returns above 11%, compared with 2.3% for traditional savings accounts, and that investment earnings represent more than half of individual-account balances. He also highlighted structural constraints on retirement outcomes: contributions total DOP 9.97 per DOP 100 of income, among the region’s lowest rates, while informality and intermittent payments make it difficult for workers to reach the required 360 contributions. Complementary pension plans allow independent workers to continue building invested retirement savings. Pension assets may be placed only in publicly offered instruments approved by the securities market and meeting investment-grade standards assessed by the Risk Rating and Investment Limits Commission. AFP portfolios have reduced their public-sector exposure and expanded private investment across areas including tourism, energy, logistics and construction, with education and health expected to follow.

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