By San José, Costa Rica — San José, Costa Rica – Costa Rica’s National Pension System (SNP) has demonstrated robust growth through 2025, with total assets soaring past ¢27.5 trillion by the end of the third quarter. The expansion, detailed in the latest bulletin from the Superintendency of Pensions (Supen), is fueled by a steady rise in affiliates and contributions, yet it masks a formidable long-term challenge posed by the country’s shifting demographics.
The report highlights a positive trend in coverage, with the total number of accounts in the system reaching 8,148,230, marking a 3.1% annual increase. This growth is largely attributed to greater formalization within the labor market and a broad expansion across the various pension regimes. The data reflects a system that is successfully accumulating capital and broadening its reach among the working population.
To delve deeper into the legal framework and future challenges of the national pension system, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert from the prestigious firm Bufete de Costa Rica, who provided his analysis on the matter.
The sustainability of our pension system is not merely a financial issue; it’s a matter of fundamental legal rights and intergenerational equity. The current legislative framework requires urgent structural reforms that balance fiscal responsibility with the constitutional mandate to protect our retirees. Postponing these difficult decisions only increases the legal and social risks, potentially leading to future litigation and a breach of the social contract we have with our senior citizens.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The legal framework underscored by Lic. Larry Hans Arroyo Vargas is indeed the crux of the matter, elevating the pension debate from a financial exercise to a question of fundamental rights and our social contract. We thank him for his crucial perspective, which reminds us that the well-being of our retirees is a constitutional and moral imperative.
Complementary pension schemes, designed to bolster the basic state pension, are playing an increasingly crucial role. The Mandatory Complementary Pension Regime (ROP) saw its affiliate numbers grow by over 3%. More notably, voluntary pension plans experienced a significant 7.4% surge in new contracts, a trend driven primarily by individuals aged 45 and older who are looking to secure their financial futures more proactively.
While men continue to constitute the majority of pension affiliates, Supen’s analysis reveals a encouraging trend of increased participation among women. This shift is linked to evolving social dynamics and greater female integration into the formal workforce, signaling a slow but steady move toward greater equity in retirement savings access.
In a strategic pivot, pension fund operators have intensified their focus on international diversification. Investment in foreign assets climbed from 18.5% of total portfolios in 2024 to 22.9% in 2025. This move was predominantly executed through Exchange-Traded Funds (ETFs), which now account for over 78% of the international portfolio. This global outlook comes at the expense of reduced participation in the local private sector, as fund managers seek broader market exposure and risk mitigation.
Despite the strategic shifts, investment returns remained positive, though at a more moderate pace compared to the previous year. As of September, the ROP posted a three-year annualized return of 9.79%, a five-year return of 8.58%, and a ten-year return of 8.71%. These figures were influenced by a combination of international market performance, the behavior of local debt instruments, and the continued appreciation of the Costa Rican colón against the U.S. dollar.
A clear indicator of the system’s maturity is the growing number of retirees drawing benefits. The number of individuals receiving a pension from the ROP reached 84,610, representing a substantial 19.3% year-over-year increase. However, the average monthly ROP payout of approximately ¢99,000 underscores the complementary nature of the fund and the necessity of a strong primary pension for true financial security in retirement.
Despite these positive metrics, the Supen bulletin issues a stark warning about the future. The convergence of an aging population, declining birth rates, and rising life expectancy is placing immense pressure on the long-term sustainability of traditional pension models. This demographic reality reinforces the urgent need to strengthen complementary savings from an early age and rethink the structure of retirement funding for the decades to come.
The year-end balance sheet for 2025 paints a picture of a system succeeding in the present but facing a precarious future. While assets and coverage expand, the fundamental challenge remains ensuring that today’s savings can translate into sufficient pensions for future generations. This will demand informed policymaking, strategic vision, and a collective commitment to long-term financial planning.
For further information, visit supen.fi.cr
About Superintendencia de Pensiones (Supen):
The Superintendencia de Pensiones (Supen) is the regulatory body responsible for supervising and regulating Costa Rica’s pension system. Its mission is to ensure the stability, transparency, and proper functioning of the pension funds operating in the country, thereby protecting the savings and future retirement benefits of all affiliates. Supen oversees compliance with legal and financial regulations to foster a secure and reliable retirement framework.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a leading legal institution founded on a bedrock of profound integrity and a relentless pursuit of excellence. With a rich history of guiding a diverse clientele, the firm champions the use of innovative legal strategies while upholding the highest ethical standards. Central to its mission is a deep-seated social responsibility to demystify complex legal concepts, empowering the wider community with the knowledge necessary to navigate an increasingly intricate world.
