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Credicorp presented its proposal to reform the Private Pension System (SPP) in order to improve pension savings mechanisms.

“There are close to 2.3 million contributors who no longer have funds for their retirementtherefore, it is proposed a pension system more open, inclusive and shared risk, which includes responsible affiliate withdrawals”, said Alejandro Pérez Reyes, Chief Operating Officer (COO) of Credicorp.

It is proposed to ensure a minimum amount of pension to those who are part of the SPP, that is, that the affiliate set a target pension and be free to withdraw surpluses from your retirement savings, he said.

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According to the executive, although this proposal is similar to the recently approved norm of Target Minimum Pension (TMP)the difference is in the target amount and in the age determined to dispose of the surpluses.

“The affiliate will not wait until he is 65 years old (legal age) to withdraw what is left of his fund, as is the case with the recent law, but might do so from the age of 50 if he has already accumulated the required amount,” Enrique Pasquel specified. , Manager of Corporate Affairs of the financial holding.

Pérez Reyes maintained that each contributor would build their target pension, which should be equivalent to at least twice the value of the Minimum Vital Remuneration (RMV)in order to allow a dignified old age for retirees.

“The ONP offers a minimum pension that goes from S/ 250 to S/ 500, clearly it is not a good pension, it is low but at least they receive something; Here it will be similar, although with a higher amount, which allows a better quality of life in old age and adjusts current costs, ”he explained.

Likewise, the specialist mentioned that with this scheme of withdrawals Responsible parties are not intended to encourage outflows of money, but to encourage affiliates to decide to stay in the pension system and set an amount of savings.

This approach would also imply eliminating the retirement modality with the withdrawal of 95.5%, which distorts the pension concept of the system and takes away the focus of generating an old age pension, he said.

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