Boric sees insensitivity of the AFPs to improve pensions in Chile

Chileans here have worked for too long all their lives and endured misery pensions, it is our duty to improve that”.

Gabriel Boric, President of Chile

The President of the Chilean Republic, Gabriel Boric, defended the pension reform announced last week and, incidentally, responded to the Pension Fund Administrators (AFP) for their criticism of the reform. The head of state said: “I read one of the letters from the AFP Association and his argument was interesting.”

“The only thing they didn’t say is that pensions should go up, they were more concerned about their business than people’s pensions and that seems to me to be worrying,” said the president in an interview with TVN’s morning show.

And he added that “Chileans here have worked for too long throughout their lives and endured misery pensions, it is our duty to improve that.”

He explained that with the reform proposal “what we do is create a mixed system that will allow us to increase everyone’s pensions.” Maintaining individual capitalization, property, heritability and “with this collective fund that will allow people to receive a significant increase in their pension. In society we all have to support each other, it is no use for each one to scratch himself with his own nails”.

He clarified that “the collective fund is not that everything goes to a well and it does not matter what you contribute. Individual effort will be recognized here. What we do is create a public, autonomous collection system where the government is not going to be able to put its hand.

Later, in a conversation about the pension reform in Pudahuel, the head of state maintained that “the objective of the reform that we have presented stems from a demand felt across the board to be able to improve pensions, and that this is not mainly a business for the AFPs. , as it has been for so long, but that we manage to grant to all the people who work hard and in particular to women”.

And he stated that “hopefully in Parliament we can reach an agreement quickly, because what is not acceptable is that due to political differences you pay the apt with pensions that are not enough to live on.”

The spokeswoman, Camila Vallejo, confirmed that yesterday the pension reform entered the Chamber of Deputies and called on the public – with regard to the 6% discussion – to “see your forms, go to your AFP and check how much it is the self-financed pension they have”. She explained that “the self-financed pension is the one administered by the AFP.”