This Thursday, April 18, the Executive Branch promulgated a decree that authorizes pension fund contributors to withdraw up to four tax units (UIT) from their accounts. This measure, approved by Congress last Friday the 12th, will be implemented by the Superintendency of Banking, Insurance and AFP (SBS). The SBS now has the responsibility of preparing and publishing the corresponding schedule that will allow contributors to know the exact dates on which they will be able to withdraw their funds.
Thousands of contributors are waiting for the possibility of withdrawing up to 20,600 soles (4 UIT) of their pension funds, which has raised questions about the best ways to invest this money. In this note from La República, the economist and doctor in Administration and Business Carlos Adrianzén It offers a detailed explanation about the situation of the contributors, what the results could be and what would be the best way to invest this money.
What is the situation of the contributors after the approval of the new withdrawal?
According to what the economist said, the most important thing is to make clear what has happened, because neither the Government nor Congress have generously returned the money to the contributors. What the Government has done is use retirement money as a small subsidy, a very small one in thousands of cases that do not have even 1 UIT in their pension funds. This will have consequences in the future, since It will leave thousands of people without savings for their retirement.
Dr. Adrianzén points out that the early withdrawal of savings in the Pension Fund Administrators (AFP) presents more disadvantages than long-term benefits, essentially because it strips contributors of their money intended for retirement. Instead of offering government subsidies, citizens have been allowed to use their own savings, compromising their future financial security.
What is the best investment option available with this money?
The economist pointed out that 4 UIT would not be enough to be able to invest in a business, especially if you’re just getting started. On the other hand, he highlighted that the money of most contributors does not reach 4 UIT; That is why the amount withdrawn will probably be used to expand your house or purchase personal property.
However, he highlighted that The best use they could give to the AFP money would be in the payment of existing debts, Well, this investment could alleviate the debts of thousands of families. It may not pay them in full, but it could be a great support to reduce the debts of thousands of people in the country.
Is it advisable for the contributor to withdraw the money if they have less than 1 UIT in their pension fund?
Retirement and its consequences are already a reality; will affect both the AFP and the ONP in the long term. Therefore, the most advisable thing, according to Dr. Adrianzén, is that you withdraw all the money you can from your pension funds. Unfortunately, the reality for thousands of Peruvians is that they will not reach 4 UIT; What’s more, thousands of them do not even reach a single one. However, under the circumstances, it is better to make the withdrawal.
Source: Larepublica
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