The impact of the COVID-19 Pandemic on the future pensions of the Peruvian pension system

The main objectives of the project are to study and estimate the potential effects of the COVID-19 pandemic on the future pensions both in the public (SNP) and private (SPP) pension systems. We consider that individual behaviour triggered by government policy (SPP withdrawals) and labour market effects of the economic crisis due to the Pandemic (drop in pension contributions in SNP and SPP) are the main causes for a deterioration in the old-age security in Peru. Importantly, this project seeks to find the potential effects on future pensions across various types of heterogeneities, including gender, birth cohort, socioeconomic status (captured by the distribution of income and/or pension balance), and region. For these aims, we plan to use microdata from administrative registers drawn from the SPP and SNP, as well as the outcome results from the IDB pension simulator, which is useful to generate macro-level data.