Pension subsidies: Dismantling subsidies for high pensions must be a priority: Asofondos | Economy



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The pension coverage of Colombia is low compared to other countries in the region, said the director of the Bank of the Republic Juan José Echavarría, during the installation of the seminar "Alternativas de ] The pension reform in Colombia."

He said that the works that have been submitted up to here, show that the country is mistaken for coverage that does not "n. not 35%, is very inequitable because the majority of state subsidies are given to strata 5 and 6, and third, complementary systems must be designed for those who do not reach the pension.

He added that to ensure the sustainability of the system ] Colombians are required to pay more if the retirement age is very low compared to other countries of the world. Latin America because it will have to be readjusted.

For his part, the president of Asofondos, Santiago Mon Tenegro, declared that in the next pension reform it is imperative to end the subsidies that are granted in the average premiums at the highest wages in the country.

this is added to extend coverage and a system is needed that is sustainable in time because the tax gap is too big.

Meanwhile, the president of Colpensiones, Adriana Guzmán, was shown 91.61% of the retirees of the entity are paid between 1 and 4 minimum wages and 8.39% have a salary between 5 and 25 minimum wages.

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