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Karin Bravo Fray
Program Director, Faculty of Economic and Commercial Sciences
San Sebastián Concepción University
The Pension Reform Proposal examines two essential points needed to increase pensions : increases the percentage of pension contributions and delays the retirement age . However, the two points are raised so as not to become an absolute burden for the worker.
In the case of the percentage of contribution, the increase from 10% to 14.2% is indicated as being the responsibility of the employer, contributed to the capitalization account of each worker (only 4% , the remaining 0.2% being badigned to a long-term care insurance). However, for the impact on employment not to be a problem, due to the consequent increase in the employer's payroll, this increase will be gradual in eight years. On the other hand, when we say that this additional contribution will improve pensions by 40% under the scheme, it will be for workers who can quote from the start this additional contribution.
Concerning Retirement At the age of retirement, the option of volunteering is good and the person is encouraged to stay in the labor market. The partial withdrawal of the contribution paid during the age, until now legal, makes that the future retirees freely manage these saved resources. However, the latter option poses quite significant challenges to society in general: there are enough jobs for people of retirement age to remain in the labor market and spaces for work. Financial education is created for future retirees benefit from withdrawn amounts.
There is no doubt that many other factors must be taken into account and, although questions may arise about the proposed measures, this is a good start for discussion.
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