Millions of Chileans choose to withdraw their pension money – Prensa Latina

The day before the start of submitting applications to the pension fund insurance companies, long queues were formed in front of their headquarters despite the fact that the authorities insistently called on residents to implement this procedure online, to avoid crowding and infection by Covid. – 19.

As reported by the Pensions Supervisory Authority, on this first day there were three million 243 thousand 657 applications from those seeking to reach this third draw of their savings from their mandatory individual capitalization accounts.

The entity indicated that this amount represents 31 percent of the total number of members of this system who still have funds.

A note from the Pensions Supervisory Authority indicated that about 10 million people could access this option, which could raise up to $ 19 billion, which would go into circulation.

In addition to these requests, there are several first and second withdrawals of funds, which were approved in August and December 2020, which reflected a significant increase last week, according to the entity.

As established, companies have a maximum of 15 business days to pay the required funds, but first deliveries are expected to start later this week.

The constitutional reform that allows for this third withdrawal was finally signed last week by President Sebastián Pinera, after strong confrontations between the legislative branch and the government, which rejected this initiative presented by the opposition.

To enforce its position, the Executive sent a restraining order to the Constitutional Court (TC), but declared it unacceptable, which constituted a severe defeat for La Moneda.

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The promoters of the measure themselves do not consider it good, as it reduces the already extremely low pensions of millions of people, but they see it as the only option to solve the problems of millions of Chileans immediately, due to insufficient and delayed government aid.

Recent surveys indicate that more than 80 percent of those consulted will make a third withdrawal of their retirement savings even if they remain with their blank accounts, and a third of them have confirmed that they will use that money to pay off debt. mgt / RC

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