Peru | Is the future someone else's problem?

Proposals to authorize new withdrawals from private pension funds do not seem to be a priority when the economy is recovering and exploiting today's youth the burden of doing something in the future for those left unprotected today.

Key points

• Key points:
• There is a lack of understanding about the nature of pension systems and the consequences that these withdrawals entail.
• It should be clear that the objectives of these systems are coverage and an adequate level of pensions so as not to fall into poverty during old age.
• From this perspective, significant withdrawals of pension funds can generate pernicious effects such as a rapid decrease in savings, falls in asset prices, devaluation of the fund, reduction of the credit rating of the country and a time bomb that is left ahead by the people who will be unprotected.
• Groups that today have influence over political decisions (congressmen) can adopt populist measures that improve their acceptance in the short term, these are not difficult to perceive because they are transferred into the future.
• Has anyone explained to young people that some politicians consider that the future is someone else's problem?

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