Peruvian Pension System

Peruvian pension system overview

The Peruvian pension system has two main contributory routes. The National Pension System is administered by ONP, while private AFP administrators manage individual retirement accounts in the Private Pension System. Workers need to know which system they are affiliated with before comparing retirement rules.

Peru also has a targeted non-contributory layer. Pension 65 provides support for older adults in extreme poverty. It is not earned through ONP contributions or AFP balances, so it belongs in the social assistance side of the comparison.

ONP, SNP and AFP accounts

ONP describes the National Pension System as a public pension route. Government guidance explains that public pension amounts depend on years of contributions and current legal rules, including minimum and maximum pension references.

The private AFP route is different. It is based on individual accounts, investment returns and withdrawal or pension options under private pension rules. These two contributory tracks should not be mixed when comparing eligibility.

Editorial raster image of Lima civic architecture for the Peruvian pension system — The Peruvian pension system combines ONP social insurance, AFP individual accounts and Pension 65 social assistance.

Pension 65

Pension 65 is the main social assistance pension layer in this profile. Gob.pe describes it as a public subsidy for older adults in extreme poverty.

The distinction is straightforward: ONP and AFP benefits rely on contributions and affiliation, while Pension 65 relies on poverty targeting and program eligibility.

Tax, portability and next checks

Readers should check their ONP contribution record or AFP account, current pension minimums and maximums, Pension 65 eligibility and any cross-border agreement that could affect contribution recognition or payment abroad.

Public pillars

National Pension System

A public pension system administered by ONP and financed by contributions from affiliates.

Pension 65

A non-contributory program providing cash support to older adults in extreme poverty.

Private and occupational pillars

Private Pension System

AFP administrators manage individual retirement accounts for affiliates in the private system.

Voluntary retirement saving

Additional voluntary saving can supplement the public or private mandatory pension route.

Benefit basis

Contributory vs social assistance pensions

Contributory / work-linked

National Pension System and AFP accounts

Basis: Work-linked pension rights through the public National Pension System or private individual-account pension funds.
Eligibility: ONP guidance describes pension access from age 65 in the National Pension System, with benefit levels linked to years of contributions under current rules.
Funding: Worker contributions to the public system or private AFP account arrangements, depending on affiliation.
Note: Peru has parallel public and private pension routes, so affiliation and contribution history determine the relevant rule set.

Social assistance / means-tested

Pension 65

Basis: Non-contributory cash transfer for older adults in extreme poverty.
Eligibility: Government guidance describes Pension 65 as support for older adults in extreme poverty, with program eligibility and registration rules.
Funding: Public financing through the social assistance program rather than an individual account.
Note: Pension 65 is separate from ONP or AFP contribution rights and is targeted to poverty conditions.

Profile details

Eligibility: SNP pension eligibility depends on age and contribution years. AFP benefits depend on individual account rules. Pension 65 depends on old age, poverty targeting and program conditions.
Retirement age: ONP public guidance describes old-age pension access from age 65. Pension 65 supports older adults in extreme poverty under program rules.
Contributions: National Pension System affiliates contribute to the public system. Private Pension System affiliates contribute to AFP individual accounts and related charges under Peruvian rules.
Benefits: SNP benefits depend on contribution years and current minimum or maximum pension rules. AFP benefits depend on accumulated account resources. Pension 65 pays a public transfer for eligible older adults.

Tax and portability

Tax treatment: Tax treatment depends on the pension source, withdrawal route and Peruvian tax rules.
Portability: Portability depends on ONP or AFP rules and any applicable international agreement. Pension 65 is a domestic social assistance program.

Sources

Pension system in Peru ONP government source - onp.gob.pe
Choose a pension system: National Pension System Gob.pe government source - gob.pe
Pension 65 Gob.pe government source - gob.pe
Pension 65 non-contributory pension program ECLAC institutional source - dds.cepal.org