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May 6, 2022
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Jorge González Izquierdo: “new AFP withdrawal signs the death certificate of the pension system”

Jorge González Izquierdo: "new AFP withdrawal signs the death certificate of the pension system"

The economist Jorge González Izquierdo pointed out that the approval of the withdrawal of up to S / 18,400 from the AFPs would have a severe impact on the pension system, in addition, that it would only benefit a part of the population and not those who need it most.

“From my point of view, the sixth AFP withdrawal is signing the death certificate of the private pension system, because according to estimates by the AFP Association itself, around 4 million members would be left with S/ 0 in their accounts” , He said in an interview with Canal N.

On the other hand, the economist mentioned that this measure could also increase the inflation that the country has today, since credits would increase.

Finally, González Izquierdo made reference to the fact that this norm did not benefit the most needy as some congressmen argue, but on the contrary, it would only favor those who “are lucky enough to have AFPs.”

On Wednesday, April 4, the plenary session of Congress approved the opinion that authorizes the optional withdrawal of up to 4 tax units (UIT) or S / 18,400 for all members of the Pension Fund Administrators (AFP). The bill received 107 votes in favor and eight against.

The proposal approved in plenary was the one drawn up by the Economy Commission, approved on April 12. This proposes that all affiliates, whether they are active contributors or not, can withdraw their money from the fund.

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