Cámara de Diputados aprueba fusión de los diez proyectos que buscan un “sexto retiro” desde las AFP

The Chilean Chamber of Deputies recently approved the merging of ten different bills that aim to provide for a “sixth withdrawal” from the country’s pension system, the Administradoras de Fondos de Pensiones (AFPs), following five previous rounds of early pension withdrawals. The proposals hope to ease economic hardship caused by the COVID-19 pandemic and will allow pensioners to take out up to 10% of their savings - with a capped limit of $4,300. Previously, five rounds of early pension withdrawals were approved over the past year, with the Chilean government previously rejecting a proposal for a sixth withdrawal. The legislative process is still ongoing, so it remains to be seen if this sixth withdrawal bill will succeed. The approval of such a proposal could be a great relief for Chileans struggling to make ends meet in these trying times, and many eagerly anticipate the final outcome of this effort. The debate on whether or not such a move is viable is ongoing, but the potential impact on pension savings and the larger economy should not be ignored.