The OECD does not understand the second withdrawal of 10%: “We would like someone to explain to us what the purpose of this is”

The project that allows a second withdrawal of 10% of AFP funds continues to advance in Congress after this Thursday it was approved in particular in the Constitution Commission so it will now be reviewed in the room.

Against this background, Organization for Economic Cooperation and Development (OECD), through its main economist and head of the private pensions unit, Pablo Antolín, assures that he cannot understand the objective of said project and criticized the measure.

“It can not be understood”

“We would like someone to explain to us what the purpose of this is. Because allowing the withdrawal to everyone without criteria based on maximum need, you can not understand. Because all of this is going to lead to people not having savings to finance their retirement tomorrow. From here you can see with disbelief, “he told El Mercurio.

The fine print of the second withdrawal of 10% of the AFPs

This afternoon, the suspended process of the project of the deputy Pamela Jiles continues, which yesterday could not continue due to the opposition of the UDI Juan Antonio Coloma. The ruling party says that the indications are to improve the initiative, and the opposition points out that they are obstacles.

“In Chile it was approved that everyone could get 10 percent, including people who had never lost their jobs, and that it has never suffered a reduction, nor will it suffer a significant reduction in income“criticized Antolin.

For the economist, the law will allow high-income people a greater benefit since they will not have to pay taxes as it does in other countries. Likewise, Antolín was against the measure because “There will be many people who do not have savings and there will be many people who will not have savings to have a large enough pension, as they would like to have.”

Finally, the economist assured that the ideal would be to put restrictions on the project because that way “People who really need that money, for these reasons, can get it, but not everyone. And in most countries causes have been established under which they can be removed and are exceptional causes of situations of financial hardship. “