After  three successive withdrawals of 10% of pension savings, it is estimated that 20% of members of pension plans today do not have pension savings in their individual accounts, therefore they would not be able to access resources from a fourth retirement process. This percentage is equivalent to 2,132,056 people, specifically 796,622 men and 1,335,434 women.

A new withdrawal of 10% would cause another 2,420,766 members to withdraw their total pension savings, which means that 4,552,822 members would be left without savings for their future pension. Of this total, 44% correspond to men and 56% to women. In this way, women continue to be the most affected by early withdrawals of pension savings, which will have a strong impact on their future pension.

In fact, considering the three withdrawals of 10% already made, it is estimated that women’s pensions would decrease on average by 33.3%, while men will see their pension decrease by 24.3%. The reason? Due to the design of each of the withdrawal processes, with a minimum of UF 35 and a maximum of UF 150, the most affected members are those with low taxable income and few years of contributions, as is the case with women.

For young people, a serious future damage is also projected in their pension savings, since the savings of the first years of contributions are the ones that receive the highest return on investments made by the fund managers. By withdrawing their savings, young members will see their future pension reduced significantly.

On the other hand, early withdrawals of funds force the liquidation of local investments, which drives a higher interest rate on national fixed income instruments. This translates into a drop in the valuation of the more conservative funds, mainly Funds D and Funds E, impacting on workers’ pension savings.

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