As discussion intensifies, Chilean Boric suggests restricted withdrawal from retirement

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Chilean President Gabriel Boric’s government on Tuesday introduced a bill limiting pension withdrawals to debt payments, hours before a parliamentary committee votes on another proposal that would include a 10% withdrawal from pension funds. . Both proposals allow workers to withdraw from their pension funds before retirement to deal with the economic fallout from the COVID-19 pandemic. But the government argues that lump-sum withdrawals would pump too much money into the economy and fuel inflation, proposing instead that withdrawals should only be used to pay down debt.

Higher demand and higher consumption,” he said. The new proposal also imposes a 10% payment cap, but limits access to pension funds for alimony, mortgages and other debts. The bill also strengthens unemployment insurance. “These are resources to reduce debt or pay alimony,” he added. Marcel presented the plan with Giorgio Jackson.

“I am confident that the alternatives (to Congress) we are proposing are clearly superior and will not have to subject the public, especially low-income people, to a spike in inflation that further erodes their purchasing power. .” Finance Minister said Mario Marcel, who presented the new bill. “It is a means of making pensions saved by workers available for purposes the use of which does not involve higher inflation.

Secretary General of the Presidency and Boric’s liaison with Congress. Jackson said it would be up to lawmakers to see “how this will affect the processing of other projects.” We allowed 3 withdrawals to cash out %, but the 4th withdrawal was declined last December. Boric has backed four exits so far but opposed further exits, citing inflation and the impact on Chile’s economic recovery.

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  • As discussion intensifies, Chilean Boric suggests restricted withdrawal from retirement
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