In this webinar the main results of the study “Withdrawal of pension funds: Defeating the Purpose of the Pension Systems were presented. A review of the effects of this public policy”, analyzing in depth the various impacts that the Covid-19 pandemic has had on employment, the number of contributors, and the collection of pension systems in Chile, Colombia, Mexico, Peru, the Dominican Republic and Uruguay, as well as the role that individually funded systems must play in the face of this type of catastrophe.

It was noted that the support measures have ranged from direct transfers by the State, flexibilities to unemployment insurance, delivery of loans and employment protection programs, among others. Meanwhile, only three countries in the world allowed savings to be withdrawn from mandatory pension funds: Australia, Chile and Peru. In addition, it was emphasized that the design of withdrawals, in the cases of Chile and Peru, reveals a lack of targeting those who need it most, a tax incentive to make withdrawals and a lack of clarity regarding how said funds will be replenished. In conclusion, early withdrawals should be a last resort resource and, if authorized, their design should include targeting, tax neutrality, and fund replacement mechanisms, so as not to generate a significant drop in the amount of pensions.

To review the video of the webinar, click here

To review the full study, click here

To download presentation used in the webinar, click here

To download presentation used by María Cecilia Cifuentes, click here

To download presentation used by Giovanna Prialé, click here