“I hope it goes up in the future,” said the BCRP president regarding the profitability of his pension fund. The official appeared before the Congressional Economic Commission to explain the impacts that the authorization of a seventh AFP withdrawal would have.
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The president of the Central Reserve Bank (BCRP), Julio Velarde, appeared before the Congressional Economy Commission to present his technical opinion on the impacts of a new authorization for the withdrawal of AFP. Given the questions from parliamentarians regarding the fact that pension fund administrators give unfavorable returns to workers, The official admitted that his profitability has also decreased, even up to 10%.
“My profitability has also gone down, my pension fund is 10% less than it was a year and a half ago. I hope it goes up in the future. (…) The average of the funds in the AFPs is that they have invested S/100 and have gained S/200 in profitability, that is, double. But these are contributions over time. In my particular case it is a different situation, but the average profitability in the (AFP) system has been twice what has been contributed,” said the president of the BCRP.
Furthermore, he pointed out that although the criticism from legislators is that pensions are going to be low, allowing a seventh withdrawal would contribute to pensions being even lower and that this decision cannot be based on the desire of the population. “Anywhere in the world you do a survey and people are going to say: ‘Yes, I want to withdraw the money.'”
It was detailed that new withdrawals would harm the profitability of pension funds and society as a whole. For example, in macroeconomic terms, country risk would increase and the credit rating would be jeopardizedin addition to increasing the cost of financing public spending and the cost of financing private investment.
Bachelor in Social Communication from the University of Lima with a specialty in Journalism. He writes about economic topics with a focus on the fishing sector.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
