HJ-BIPLOT as a Basis for the Search of Clusters Based on Pension Indicators for Latin American Countries

ABSTRACT

In the 1980s, Chile’s Decree-Law No. 3500 introduced a new Pension System in Latin America based on individual savings by workers during their working life, thus discarding the distribution model. The system has been implemented in several countries in the region, such as Mexico, Uruguay, Peru, Colombia, Panama, Costa Rica, El Salvador, and the Dominican Republic, so that today in Latin America, two types of systems coexist, one with a public fund and the other with individual savings managed by private companies called Pension Fund Administrators (AFP). Since before the Pandemic, Latin America has had demographic, occupational, and other problems, which have deepened with COVID-19 and have had a negative impact on the economies of various countries in the region, and which have seen pension savings as a support option for overcoming the crisis. Different politicians and experts have analyzed the situation, if this withdrawal of savings from pension funds supports people to overcome one of the worst economic crises in recent years, risking the pension systems to get rid of assets in different markets, mainly where demand is weak and liquidity is low. This article seeks to explain the trend of the AFPs using the HJ-Biplot statistical method. © 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.