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FIAP > Destacados Boletines > WPA endorses FIAP declaration on withdrawal of pension funds
23 September, 2021

WPA endorses FIAP declaration on withdrawal of pension funds

The World Pension Alliance (WPA) appreciates the devastating impact of the COVID-19 pandemic on the personal finances of millions of retirement fund participants around the globe.

However, the WPA note that unrestricted withdrawal of pension savings intended to provide retirement income without repayment will undermine the retirement security those funds are intended to provide, and this will only aggravate the situation of these workers in their old age, since they will suffer from greater financial fragility at the time of retirement.

The WPA also calls on all governments to not expand the early release of pension savings from defined contribution accounts as a pandemic response, especially unrestricted withdrawal amounts and unconditional access to defined contribution accounts.

Finally, the WPA warns that the success of pension systems is closely aligned to the prevalence of strong institutions and committed governments, and that this is a time to strengthen private pension savings systems as a means to properly diversify the sources for pension financing, not disband them as is currently proposed in Chile and Peru.

The members of the WPA endorse the FIAP declaration.

To download the full declaration, please click here.

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