Our pension at risk?
The deepening global financial crisis has had on edge especially those who are related to private pension funds whether voluntary or with a solidarity contribution from the state. Of course, in Colombia things are not as severe as in the United States, but at such tremendous financial situation is a latent risk, without involving a red alert, even more if one takes into account the disturbing news of January 2008, when the Banking Supervisory Authority said the pension and severance pay system had lost more than 2 trillion dollars and that of recently when the same entity announced that following the bankruptcy of Lehman Brothers hit at least five fund managers Pension (AFP) for a value close to the 55,000 million pesos and that these losses could be reflected in the next excerpts received by savers.
When you read things like that can not help but worry. But with all the information that we have, starting with the extracts of our individual account pension and severance pay and ending with explanations encouraging the Minister of Finance, I am convinced that we should not be alarmed, at least for now. We are not in the situation of people registered in the United States, Mexico, Chile and Argentina, especially those playing in the voluntary plans in the USA), which have been vanishing at a time when their little money by the siphon huge collapse in stock market indicators. Remarked here that the only U.S. case, funds from public and private pension and private retirement accounts for workers-the so-called 401 (k) – have lost almost 30 percent of its value in the last year! Therefore, as the superintendent said, the impact of the further loss of 55,000 million is minimal (the losses in the first months of the year had already been recovered for the month of April) when compared to the overall volume of investment portfolio manage the pension fund managers that is 57 Billion dollars and also much of the investments of these entities have been made in certain papers and not toxic paper from outside as it happened in the countries stated above. For example, just to reassure the comparison, in Chile, the report CENDA, 21 September 2008, losses amounted to 20,000 million dollars, or something like 44 trillion dollars!
All these reasons lead us to conclude that by now our pension no higher risk, but before the shocking proportions that have come to the loss of pension systems in many countries of the world must demand much more control, regulation and much more guarantees of the Colombian government in order to assure all contributors to the worktops that can stand up to his death at this point in the discussion include the possibility of returning to a full public pension system.
No Comments to “Our pension at risk?”