The president of Asofunds, Santiago Montenegro, reaffirmed his defense that pension funds allocate part of their investments to finance infrastructure, days after the controversy generated by the investment of $4.5 billion in different types of projects.
(See: Boric disapproval grows in Chile after a month in the presidency).
Some have questioned that part of the pension savings resources are invested in the country’s roads, while others assured that no pension fund in the world invests in public works.
On the contrary, the union leader said that the funds in all the countries make investments in many items, including infrastructure projects in schools or roads, among others.
He said that 80% of subsidies in the public pension system go to the two highest income quintiles and in addition to these subsidies, he assured that 90% of affiliates to the public system are not going to retire, because there are no savings in On average, workers work and contribute for 10 years.
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For this reason, he indicated that in Colpensiones those who do not retire they return their resources under the figure of substitutive indemnity, without a real interest rate, only adjusted for inflation and these resources are on average seven times lower than those returned, in those cases, by private funds.
In his turn, the financial superintendent of Colombia, Jorge Castaño, recalled that currently most of the affiliates are still young, so “From now on we must implement proposals that allow an adequate management of the risks at the time of their retirement.”.
(See: Pension funds will invest $4.5 billion in infrastructure).
“The discussions should not only take place regarding the contingency of old age but also in disability and survivalCastano said.
Some 3,500,000 young people between the ages of 20 and 24 are linked to the different pension systems in the country.
“The vast majority of members today are young. What a great responsibility we have today, in some way, in terms of how to educate, how to deliver the corresponding information“, said.
(See: The crossroads that has the Colombian pension system in crisis).
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