Foundation warns over 70% of Dominican workers face inadequate pensions

Santo Domingo.- More than 70% of Dominican workers will not receive pensions sufficient to maintain their standard of living unless structural reforms are made to the current pension system, the Social Security for All Foundation warned, calling for urgent action to avert a future social crisis.

In a recent analysis, the organization said that nearly 1.6 million affiliates will reach retirement age between 2031 and 2033, yet only 30.3% contribute regularly, a trend expected to result in low retirement benefits for most workers. The group cautioned that widespread pension shortfalls could fuel social unrest and pressure on public institutions.

The foundation attributed the problem to low contribution rates, AFP commissions, high labor informality, and the absence of the contributory-subsidized regime for self-employed workers. It proposed gradually raising pension contributions to 16.2% and reducing AFP commissions to 0.50%, measures it says could significantly improve future pension payouts and strengthen protections for low-income retirees.