Investment opportunities for severance and retirement funds in Ecuador (Original)

Abstract

This article presents a systematic literature review on investment opportunities for unemployment and retirement funds in Ecuador, based on the PRISMA protocol. Through the analysis of six relevant studies published between 2019 and 2025, the paper identifies structural challenges and alternatives for improving the sustainability of the Ecuadorian pension system. Key findings include a high concentration of the Ecuadorian Social Security Institute's portfolio in government bonds, increasing pressure on the Ecuadorian Social Security Institute's liquidity, and a critical projection predicting the possible depletion of the pension fund by 2026. Added to this is an adverse demographic context and a loss of public confidence in the public system, which has favored the rise of private pension funds. Within this context, opportunities such as diversifying investments toward sustainable and international assets, professionalizing management through independent committees, and reforming the contribution model stand out. The study concludes that, without profound structural reforms, the pension system faces an imminent risk of collapse, although there are still windows of opportunity to ensure its sustainability if sound technical, ethical, and political decisions are made.