Pensions in Colombia: Colombians prefer individual savings funds for their pension |  jubilation |  my finances

As a prelude to the filing of the pension reform, that will be presented this Wednesday, March 22 in Congress, the National Association of Entrepreneurs of Colombia (Andi), next to National Consulting Center (CNC), delivered a perception survey on the Colombian pension system.

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

As explained Pablo Lemoine, president of the CNC, 2,900 telephone surveys were carried out. Of this total, 36% said they were affiliated with a pension, 6% claimed to be a pensioner, 54% are not affiliated with the system and 4% do not know or do not respond.

Lemoine added that the total survey sample makes it representative for about 37 million Colombians.

One of the most striking conclusions is that 90% of those surveyed consider that contributing to pensions is an investment for old age, while 10% say that it is voting for money.

When consulting Colombians about the destination to which they would like their pension contributions to go, the 81% corresponds that you prefer that «accumulate in an individual savings account in your name, whose resources are exclusively owned«.

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

While for the remaining 19%, the ideal is that the savings «go to a common fund, through which, with their contributions, the pensions of those who are currently retiring are paid, that is, the money is shared among all the beneficiaries«.

Pablo Lemoine, director of the CNC (left), and Bruce Mac Master, president of Andi (right).

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In addition, 62% consider that the pension system needs changes: 35% believe that it should be partial changes and 27% that it should change completely.

(See: ‘In the pension reform, the capital market is not something minor’).

In contrast, 23% think it should stay the same and 15% have no opinion on it.

«We have found very important results about the feeling that Colombians have about the pension system, which, without a doubt, is one of the great pending issues that Colombia has.«, emphasizes Bruce MacMaster.

Another notable conclusion of the study is that 94% of Colombians consider that it is their right to choose how to contribute their pension.

It is also striking that The biggest fear they have is that the parameters to retire will change, situation felt by 69% of those surveyed.

(See: Who can raise the weeks and other questions about the pension reform).

66% are concerned that the Government does not fulfill its pension promises, while 28% are anxious that there is no money at the moment when their turn to retire comes.

For their part, 70% of Colombians affirmed that there should be a public fund to cover the pensions of the elderly without coverage, but it is highlighted that 87% consider that the money for pension subsidies should leave the State.