The approval of the eighth withdrawal of the funds from the AFP continues to generate controversy in the country. Mercedes Aráoz He strongly criticized Congress’ decision and revealed that it is a “populist” measure that threatens the sustainability of the pension system in Peru.
Aráoz said that this new retirement represents a severe blow for affiliates and the future of the pension system. “What we are showing to the market is very bad, because we cannot assure you to the contributor that an adequate pension may have,” he told RPP.
According to the approved law, affiliates may withdraw up to S/21 400 of their individual funds, which, in Aráoz’s opinion, seriously compromises the future of the youngest, who could reach old age without sufficient pension resources.
The economist stressed that, with continuous retreats, more than half of the funds accumulated in AFPs have already been lost, weakening the ability of the system to generate profitability and reinvest in capital markets.
“This system, although it was not perfect, was a forced savings that allowed accumulating funds to give decent pensions. With decisions like this, we are destroying the possibility of having adequate retirement,” he said.
Finally, he warned of the macroeconomic effects that this measure will bring. He explained that the massive output of AFP money will reduce the strength of the capital market, which will have an impact on the financing of the private sector and the economic stability of the country.
