The new CEO of AFP Habitat, Max Sichel, made his first public remarks this Thursday since taking the helm earlier this year. During the company’s 2025 annual report, he focused his analysis on the challenges posed by the pension reform currently under legislative review.
Sichel warned that the current focus must remain on the technical execution of these changes. According to the executive, an accelerated implementation or one that lacks room for adjustments could directly harm workers' assets.
“A rushed implementation, or one without sufficient space for adjustments, could end up affecting members' savings. When it comes to pensions, mistakes are neither neutral nor easy to fix,” Sichel stated to subscribers and online attendees.
The Challenge of Long-Term Returns
Habitat's CEO acknowledged that the reform includes some progress, but questioned its ability to solve the core issue: low pension payouts. He argued that the current measures fail to address those with gaps in their employment history or low contribution density.
Regarding competition, Sichel criticized the logic behind the stock bidding process. He asserted that this measure does not guarantee better results for all workers, as the benefits do not translate into concrete improvements for those who do not contribute regularly.
The executive also scrutinized the investment regime. In his view, current frameworks are too restrictive and limit the diversification necessary to navigate various market scenarios.
“Ideally, each AFP should be able to propose its own benchmark to the regulator within a clear general framework. That would allow us to compete on what truly matters: generating the best possible returns,” the executive explained.
Finally, Sichel called for a gradual approach to mass transfers of members. He warned that if these portfolio shifts are not managed within appropriate timeframes, they could negatively impact the long-term profitability of the funds. He insisted that there are still opportunities to improve the reform's design before it takes effect.