translated from Spanish: AFP proposed that contributors be allowed to withdraw 5% of their funds for coronavirus crisis

Through a statement, the Chilean system’s newest AFP, UNO, proposed that up to 5% of the forecast funds of the contributors be withdrawn, as a method to alleviate the economic effects of the crisis caused by the coronavirus outbreak.
«The challenge we face in Chile by Codiv-19 requires extraordinary actions. To deal with it successfully, Chile will need all the tools at its disposal,» said the fund manager.
UNO further stated that «savings in pension funds belong to people, and its main objective is to finance their pensions. However, we have always stated that in extraordinary circumstances, paradigms must be avoided.»
The AFP said it was aware that the proposition lowers the balance of future pensions, but stated that «we believe that people understand that this is an exceptional measure and that, once this crisis is overcome, we must make the effort to increase savings that’s intended for the pension. Therefore, once this crisis has been overcome, Chile needs to resume the discussion of reform leading to a substantial and sustainable increase in pensions today and the future.»



Original source in Spanish

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