More than 4.1 million Chileans request the third pension withdrawal

Santiago de Chile.– More than 4.1 million people have already requested to withdraw 10% of their private pension funds, a measure approved a week ago in Chile to support the decimated middle class to face the serious economic crisis caused by the pandemic, reported this Tuesday the union.

Of the total applications, 43% were made by women and 57% by men, while 48% were made in Santiago and 52% in the rest of the country, according to the latest balance sheet of the Association of Fund Administrators of Pensions (AFP).

The process, which is carried out mainly electronically during the first two weeks, may involve the outflow of 19,000 million dollars from these social security funds.

This is the third withdrawal approved by Chile, after those of July and December, which between the two involved a disbursement of more than 37,000 million dollars, according to the Superintendency of Pensions.

Around three million of the 11 million pensioners no longer had savings in February for a third withdrawal of 10% due to the two previous operations, according to the regulator.

This was one of the arguments that the Government used to frontally oppose the project and the reason why they entered a project, which began to be debated this Monday in Parliament and that seeks to deliver a bond of 200,000 pesos (280 dollars) for those who have run out of funds.

The withdrawals generate controversy: while the detractors point out that they represent a way of mortgaging the future of the taxpayers, the defenders believe that the pandemic is lasting longer than expected and that the 18,000 million dollars in aid announced by the Chilean Government “does not they are reaching out to the people. “

Despite being one of the countries with the most vaccinated population in the world, Chile is going through the worst moment of a second wave of covid-19 that forced the imposition of total confinements and which is assuming the end of thousands of businesses that had managed to save themselves from the confinement of 2020, the year in which the gross domestic product (GDP) suffered a drop of 5.8%.

The Chilean pension model, implemented by the dictatorship of Augusto Pinochet (1973-1990) and a pioneer in the region in establishing individual capitalization, is widely criticized for the ridiculous pensions it offers and the millionaire benefits of the private companies that manage the funds. . EFE

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