Peru | An inheritance for today's youth?

Summary

Authorizing a new withdrawal (the seventh) of pension funds is a bad idea: it benefits high-income members, will induce higher rates and will leave millions without any support to cope with old age.

Key points

• Key points:
• According to the Superintendency of Banking and Insurance (SBS), with the new withdrawal, there would be around 8.1 million active members without funds in their accounts (90% of members).
• Of course, the Private Pension System requires improvements. But destroying the system is not the way.
• In the future, society will most likely support people who withdrew their pension funds and were not careful to save enough. It will be today's young people who will have to face this future burden with more taxes, more debt or a lower provision of public services.

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