Young people will be most affected by the pension reform

According to industry experts, the financial sustainability of the new pillar system proposed by the national government’s pension reform is one of the main concerns.

Daniel Wills, technical vice president of Asofondos, assured that young people will be most affected by the provisions of the pension reform that will be passed in the Congress of the Republic and proposes a system of pillars.

“The most affected are the young people, because by hiding the problems, they come out again,” said the expert.

The expert claimed that the financial issue is more of a concern and that the reform also restricts workers’ freedom to choose where to contribute their pension. It is estimated that 88% of employees who will fall into the contributory pillar will not be able to choose where they contribute.

He said that the minimum wage ceiling to contribute to Colpensiones, which is 3 monthly wages according to the reform, has a very important financial implication because the higher it is, the bigger the “gap that remains to be paid” and that’s what that becomes not said.

“We understand that pre-retirement subsidies are given beyond what people have contributed, but the issue has to be fair, what we are proposing is that the subsidy is given at retirement age and the costs borne by the nation are clear and don’t stay under the rug.” for future generations,” he explained.

Wills participated in a panel of experts on pension reform at the national labor meeting hosted by the National Association of Entrepreneurs (ANDI) in Barranquilla.

Source: El heraldo