Pension reform: 94% of Colombians prefer to freely choose their fund |  jubilation |  my finances

The pension reform It is one of the issues that most concern citizens. The bases of the project that will be filed this March 22 before the Congress They report a radical change in the system, which would have a single model made up of pillars, in which all contributions below three minimum wages would go to Colpensiones, and from then on to private funds.

Within the framework of this discussion, the National Association of Businessmen of Colombia (Andi)next to National Consulting Center (CNC)a perception survey on the pension system in Colombia appeared, according to which, 94 % of Colombians consider that it is their right to choose where to contribute a pension, whether in the public or private system.

(Pension reform: 86 of the 89 articles of the project were agreed)

In line with this, 78% of citizens prefer to have the freedom to decide which pension fund to be in, while only 22% prefer that the government choose which fund they should be in.

Colombians deeply privilege their right to choose, and if that is so, the obligation to send contributions to the public system would eventually go against that principle. In this aspect there is a big difference with the bases of the bill”, commented Bruce Mac Master, president of Andi.

(81% of Colombians prefer an individual savings fund for a pension).

It is worth mentioning that the study results are based on 2,900 telephone surveys, representatives for around 37 million people, as explained by Pablo Lemoine, president of the CNC.

Among the key points of the study it is highlighted that only 36% of those surveyed said they were affiliated with a pension, 6% claimed to be a pensioner, while 54% assured that they are not affiliated with the system and 4% do not know or do not answer.

It is also highlighted that 81% of Colombians prefer that their contributions be accumulated in an individual savings account in their name, in which their resources are their exclusive property and only 19% respond that they prefer that they go to «a common fund, through which with their contributions they pay the pensions of those who are pensioners today, that is, they are shared among all the benefits”.

(What to expect from the pension reform of the Petro government).

It is also highlighted that 69% prefer their pension savings to be in an account managed by pension expertswhile 31% consider that the best option is for their pension savings to be managed by the government.

On the other hand, 96% would prefer, in case of failure, that your money saved for the pension be given as an inheritance to cousins, uncles, nephews or children even over 25 years of age.

In presenting the report, Lemoine highlighted that 62% of those surveyed think that the pension system needs changes: 35% believe that it should be partial changes and 27% that it should change completely.

(Pension reform would give rise to a new savings fund).

However, for 23% the Colombian system should remain the same, while 15% of the participants obeyed that they do not have an opinion on the matter.

Another of the aspects that the survey of the National Consulting Center explored are concerns. 69% are concerned about the possibility that the requirements to retire will change, such as the pension age or the weeks contributed; 66% are concerned that the Government does not fulfill its pension promises, and 28% that there are no resources when they go to retire.

It also stands out that 70% of Colombians affirmed that there should be a public fund to cover the pensions of the elderly without coverage.

This March 22 the pension reform will be filed

The Ministry of Labor informed that this March 22 will be filed at 11:00 am the pension reform bill before Congress.

Among the bases that were presented last week, the change towards a four-pillar system stands out, in which, at a first level, would benefit from a solidarity bonus of $223,000 to nearly 2.5 million older adults who do not have access to a pension.

(Coverage and costs, the dilemmas generated by the pension reform).

Another key point of the project is the creation of a Savings Fund, as a special account managed by Colpensionsso that the entity can invest in TES.

In addition, the proposal for a pension bonus for caring mothers that would compensate 50 weeks of contributions for each child.

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