LatinNews Daily - 25 June 2021

In brief: Peru’s pension system remains stable despite high early withdrawals

* Peru’s superintendency of banking, insurance, and private pensions (SBS) has released figures showing that the privately managed pension system (SPP) has remained stable despite the high uptake of individuals taking advtange of new legislation that allows them to withdraw funds from their pension early. Since the first withdrawals were approved in April 2020, PEN33.36bn (US$8.37) have been withdrawn from the SPP, which the SBS’s pensions superintendent, Elio Sánchez, said represented “20% of the total value of the pension funds”. Whilst the SBS said that its funds had remained stable due to a strong return on investments in 2020, it urged a new law to repeal the permitted withdrawals, which it said “are damaging because they reduce the number of Peruvians who will have a retirement pension and diminish the pensions of many others, exposing Peruvians to poverty in old age”.

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