The Superintendency of Banking, Insurance and AFP (SBS) indicated that affiliates to the Private System of Pensions (SPP) who withdrew their retirement savings early will have little or no protection upon retirement.

“In Peru, to date, there are 2 million members who do not have balances in their pension savings accounts and during 2020, 5.2 million members accessed their funds at least once, having withdrawn S / 33.685 million, that is, 21% of the pension fund at the end of March 2021. In both cases, there will be little or no protection at retirement age “said Socorro Heysen, head of the SBS.

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During his participation in the “Panorama and Challenges of Pension Systems”, Heysen said that, as a result of the pandemic, governments had a great challenge to put measures to help citizens. Among them, direct support, making unemployment insurance more flexible, granting subsidies for contributions, up to the liberalization of pension funds in individually funded systems.

He added that all this with the purpose of providing liquidity to workers to alleviate their needs or obligations caused by the COVID-19 pandemic in the short term.

“As these are short-term measures that are intended to solve immediate problems, one cannot fail to look with special care at the provisions that allow the early withdrawal of pension funds, as they result in a decrease in the amounts of future pension funds. pensions of workers who take advantage of these measures “, he referred.

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In addition, the head of the SBS said that after a year of health crisis some effects can be expected after allowing early withdrawals of retirement savings, the most visible being the increase in lack of protection in the old age stage.

“The SPP in Peru presents several challenges, perhaps the most difficult being the low levels of coverage and the demand for better pensions by the affiliates, for which the formulators and those responsible for public policy must continue working to establish measures, that contemplate a balance between providing financial relief in the short term without affecting the long term “, he said.

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