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"That the best of times will reach all Chilean households", with this sentence, President Sebastián Piñera delivered his speech on television, announcing the pension reform project, which provides a controversial incentive for workers to postpone their retirement.
In this way, the government will be motivated by the fact that men and women voluntarily retire later. "In fact, an additional five-year tenure on the labor market increases the amount of the pension by more than 40%," said the President.
This means that if men retire at age 65, the government's idea is that they can finish their job at age 70 and thus benefit from a much better pension because " the state will also pay additional contributions "for this to be so. The same will apply to women who are retiring at age 60. According to the data provided by the president, if they retire at age 65, women will benefit from a 40% improvement in the money they will receive at the end of the month.
Justification
Where did the idea come from? According to the president, three reasons explain the low level of pensions: this savings represents only 10% of salary, which is "clearly insufficient", in his own words; by the deficiencies that exist in impositions to AFP when a person is left without work; and thirdly, he said that "given the increase in life expectancy, the retirement period that needs to be funded with our pension savings is becoming longer."
We will have a new treatment with the elderly. #ReformaPensiones increases by 4% the savings made at the expense of the employer and offers options to those who choose it freely, reinforces Pilar Solidario and favors + vulnerable people, belonging to the middle clbad, women and those who postpone the retirement age
– Sebastian Piñera (@sebastianpinera) 29 October 2018
This last reason was essential for the last of the five pillars announced by the president. In any case, it should be mentioned that the government's incentive proposal is intended for people who choose to retire later of their own free will.
However, criticisms have been made about social networks. The user Guillermo Padilla, who identifies himself as scientific director of Fundación Chile 2100, has even compared this announcement to a "refundable temporary adjustment" that appears in The Simpsons, in a chapter in which Lisa becomes president of the United States. [19659006] "Temporary Refundable Adjustment" pic.twitter.com/acui6J2Fzl
– Gonza's Padilla (@Showtimus) October 29, 2018
Other users also criticized the announcement. Claudio Villegas wrote on Twitter that the reform is "alms for the most vulnerable workers and workers"
Reform … Alms for the most vulnerable workers, most of the time. companies for banks and for AFP, their company does not touch him. Poor pensions but the AFP to fantastic benefits.
– Claudio Villegas (@_crvillegash) 29 October 2018
"A pension reform would encourage the extension of the retirement age by five years." Our current labor market does not create a new age of retirement. Spaces for the elderly (and not so old) to have a job, how to push back the retirement age if they are unemployed? ", Asks the user @slivingstone.
The pension reform would encourage the extension of the retirement age by 5 years. Our current job market does not create spaces for the elderly (and therefore older) to have a job. How can we postpone the age of retirement if they are unemployed?
– sc.livingstonev (@serlivingstone) 29 October 2018
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