News Latin America Petro lashes out at private pension funds in his first appearance after...

Petro lashes out at private pension funds in his first appearance after overcoming the flu

Colombian President Gustavo Petro – CHEPA BELTRAN / ZUMA PRESS / CONTACT PHOTO

The Colombian president, Gustavo Petro, has lashed out this Friday against private pension funds and has stressed the importance of the State providing some type of income during retirement, since the majority of citizens have not earned enough during their working lives. enough to reach them with private sector savings.

In his first public appearance after recovering from the flu, Petro has pointed out that in private funds there is a forced savings system through which financial institutions earn a commission for managing the resources of workers and businessmen, which he describes as “play with money” and not a pension.

“As the majority of the working people of Colombia did not earn even a minimum wage, on average, in their existence (…) there will never be a sufficient monetary mass unless the State helps and puts into the Budget so that there can be some kind of income after completing the time to retire”, he stated according to what ‘El Colombiano’ has reported.

After that, the president has defended his pension reform that will be debated next year and includes three steps. A solidarity bonus of 500,000 pesos (about 995 euros) for all retirees, a contributory one for which every person who works will contribute with a base between one and four minimum wages and an optional last one for those who want to increase their pension.

The Colombian newspaper reports that Asofondos, a company in the sector that brings together Colfondos, Porvenir, Proteccion and Skandia, shares the need to increase public pension coverage and the need to reform the current system, but disagrees with the formulas proposed by the Government from Petro.

Thus, the union suggests that the solidarity bond be financed with the sale of the country’s assets, the use of dividends from Ecopetrol and the elimination of subsidies for the highest pensions in the public system.

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