90% of Colpensiones members will not be pensioned, assures Asofondos

During the opening of the 15th Fiap Asofondos Congress, which is being held in Cartagena, the president of the Association, Santiago Montenegro, warned that, due to the poor targeting of State subsidies, only 10% of Colpensiones members will retire, as reported by RCN Radio.

According to the union, of the 6.5 million older adults in Colombia, only 1.6 million have been pensioned, while more than 3 million today have neither a pension nor a subsidy.

In this regard, the president of Asofondos assured that, due to the lack of pension coverage, and the poor targeting of state subsidies, 90% of Colpensiones members will not be pensioned, according to what was compiled by the Bogotá broadcaster.

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Next, the president of Asofondos said that although people who fail to retire in Colpensiones receive their money back adjusted for inflation, he said, the figure is seven times lower than that of private funds.

Faced with the panorama, the president of AFP Protección and president of the Board of Directors of the Colombian Association of Administrators of Pension and Unemployment Funds (Asofondos), Juan David Correa, stated that it is necessary for Colombia to build “a better system for the protection of old age: more equitable, sustainable and above all ensure greater coverage”.

According to Correa, one of the actions that can be taken to ensure a more equitable pension system is that subsidies are given to “people who really need it”, since he assured that, as of today, 80% of these aids go to people whose income “falls within the decile fourth and fifth”.

Taking these scenarios into account, Asofondos estimated that by 2025, of the 14.2 million older adults expected to be in Colombia, more than half (8.3 million) will not receive a pension or subsidy.

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In its latest balance sheet, Asofondos announced that, at the end of 2021, affiliates to Colfondos, Porvenir, Protección and Skandia reached 17.9 million, which represented an increase of 5% compared to 2020.

Of this figure, 83 per cent were identified as under 45 years of age and, according to the Association, “in a similar proportion they paid over a wage income range between 1 SML and 2 SML”.

In addition, he said that most Colombians prefer pension funds, “since seven out of 10 chose to build their savings for old age with Colfondos, Porvenir, Protección and Skandia.”

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