Pension dipping in Peru and Chile
Millions of people are emptying their pension pots to cope with rising prices.
Business Daily · BBC World Service
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Show Notes
Millions of people in Peru and Chile have been allowed to empty their retirement pots to cope with Covid-19 and rising prices, putting the pension system and the economy at risk.
Chilean Senator Alejandra Sepulveda explains why she supported early pension withdrawals as a one-time emergency measure to reactivate the economy while the OECD’s expert on pensions Pablo Antolin explains the relevance of restricting this kind of initiatives to only those in need.
We also hear from pension-dippers Ana Alvarez, Antonio Aliaga, and Antonio Valladares on why they don’t trust the pension system in their countries and Peruvian business reporter Karina Montoya reflects on how free pension-dipping during the pandemic has completely changed the way people see retirement funds in her country.
All this money leaving retirement funds at the same time is having consequences in the economy, as the former finance minister of Peru, David Tuesta, and the current finance minister of Chile, Mario Marcel, tell us.
Presenter / producer: Stefania Gozzer Image: Pension jar; Credit: Getty