President Gabriel Boric addressed the criticism of the AFP Association against the pension reform, which intends to put an end to these entities. The head of state pointed out that the AFPs “are more concerned about their business” and that “people are tired of lower funds.”
“His argument was very interesting, the only thing they didn’t say was that pensions should go up. They are more concerned about their businesses than about people’s pensions and that seems to me to be worrying,” said the President in conversation with the morning of TVN.
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“Today we have an extreme system in Chile, which does not exist in almost any part of the world, where everyone scratches themselves with their own nails. Where I imagine that we all agree that he is not delivering decent pensions, “continued the head of state.
“The AFP Association (said that women) have gaps because they have not worked. To the women who are in the house. Do you not work in the house? In Chile, unpaid work is not recognized and it is essential,” said Boric.
“People are tired of funds going down and AFPs continuing to earn money. Why is that happening?” he added.
Advocacy for reform
The President also defended the pension reform, pointing out that it means “a substantive contribution for people based on their savings and on top of that we are increasing the employee’s contributions paid by the employer by 6%, and creating a collective fund that distributes best way these savings.”
“Chile has resources but they are poorly distributed and that is why our tax reform is progressive, because those who have the most are told that they have to collaborate more with the rest, in order to be able to build social cohesion, that is what is important. A country that is not cohesive cannot grow,” she added.
