The Use of the Insurance Method in the Peru Pension System

Jarosław Poteraj

doi:10.2478/wrlae-2025-0003

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The Use of the Insurance Method in the Peru Pension System

Wroclaw Review of Law, Administration & Economics

Volume 15 (2025): Issue 1 (December 2025)

By: Jarosław Poteraj

Open Access

|Apr 2025

Abstract

The unique formula of the pension system in Peru consists of two competing schemes - a public pay-as-you-go scheme (SNP) and a privately funded scheme (SPP). However, only the SNP scheme can be considered as a solution using the insurance method due to the presence of a premium as a source of financing and a common risk fund. On the other hand, SPP uses an investment method to accumulate retirement resources. Using the example of Peru, it can also be stated that the influence of „black swans” (such as the COVID-19 pandemic) on human behaviour may lead to the complete annihilation of resources accumulated with rational justification intended for retirement purposes.

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Articles in this issue

DOI: https://doi.org/10.2478/wrlae-2025-0003 | Journal eISSN: 2084-1264

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Language: English

Page range: 20 - 45

Published on: Apr 14, 2025

Published by: University of Wroclaw, Faculty of Law, Administration and Economics

In partnership with: Paradigm Publishing Services

Publication frequency: 2 issues per year

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Law,

Public law,

Public law, other

© 2025 Jarosław Poteraj, published by University of Wroclaw, Faculty of Law, Administration and Economics
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 15 (2025): Issue 1 (December 2025)