Paraguay faces a critical crossroads in its pension system, marked by low coverage, inequities, and the risk of fiscal collapse. Against this backdrop, the proposal for a structural reform based on individual capitalization is gaining momentum as an alternative to the current pay-as-you-go model. In this article, our international analyst, César Addario Soljancic, explores in depth how this transition could be implemented, its impacts on workers, lessons from countries such as Chile and Costa Rica, and the keys to achieving a more sustainable, equitable, and modern system in the Paraguayan context.

In this article, our economic analyst César Addario, economic advisor to Salvadoran President Nayib Bukele, proposes the creation of a universal pension of 1,500,000 guaraníes per month for all individuals over the age of 65 in Paraguay. The initiative aims to ensure a dignified retirement without the need for prior contributions or tax increases, through a financing model based on budget reallocations, revenue from binational companies, and the fight against tax evasion.

Paraguay is facing a structural crisis in its pension system, characterized by informality, inequality, and a lack of sustainability. In this analysis, we explore why pension reform in Paraguay—based on a hybrid model that combines a state-run pay-as-you-go pillar with private individual capitalization—could offer a viable solution.

With the clean energy from Itaipú as its greatest strategic asset, Paraguay is emerging as a new hub for artificial intelligence development in Latin America. Can our country become a regional technology leader before its energy surplus runs out?