- Protección invites companies and workers to design a Complementary pension plan and enter into the dynamic of anticipating the retirement moment, building complementary savings that allows them to maintain the quality of life for workers once they stop working.
- Saving must be encouraged so that it may become the best ally for Colombians, especially young people.
- That is the logic of +Protección, a voluntary savings solution that the company presents as a response towards the reality of longevity that the country is experiencing.
Medellín, Colombia, September 25, 2023. It is a reality, that Colombians are living longer, and that longevity has an effect on our pensions and quality of life at the moment of our retirement. In 2023 life expectancy in Colombia is 78 years, 20,1% more than in 1950, when it was 65,3 years. This increment is more pronounced in women, whose life expectancy to this date is of 82,3 years.
In that sense, savings have become a fundamental option to ensure a more stable and protected future in terms of pensions, since according to the survey “Demanda de Inclusión Financiera 2022” only 53% of Colombians have the habit of saving, of which, 77% do it exclusively to have a backup against unforeseen events and only 20% to complement their pensions.
“To the extent that the subsidies are better focused, as is our aspiration with the Pension Reform, the Colombians with less opportunities will receive support from the State, meanwhile workers with better salaries will have to take care of their own pension supplement. The reform Project that is currently underway in Congress proposes a voluntary pillar as a pension supplement, which is becoming increasingly more relevant.” Explains Juan David Correa president of Protección.
Protección invites companies and workers to design a Complementary pension plan to anticipate the moment of retirement, building savings that allow them to maintain their quality of life in the cycle that begins.
The PFA exist with the expectation to help people build savings for their pension. To do this, the contributions that each worker does are taken to their individual mandatory savings account and are transformed, over time, into a sum that allows each individual to achieve their pension goal. When a person affiliated to a PFA in Colombia accesses their pension at the end of their working life, approximately two-thirds of what they receive are returns.
“For the goal of a better retirement to be achieved, it takes a long term and the power of compound interest. Starting from the fact that life expectancy in Colombia is each time greater, the question is: What would happen if within this same dynamic of mandatory saving for pensions, each person, to the best of their abilities, took a monthly sum into a voluntary savings account with the sole objective of supplementing their pension? Surely, we would maximize the value of the allowance we would receive for our well-being” explains Correa.
The PFA were created as mechanism to mitigate the incapacity that us humans have to control or manage long-term savings, since it is possible that in the event of a situation, we would have the temptation to access these resources. Protección, and their Complementary pension Plan model, help clients to raise a barrier so that those resources are used for their well-being in old age. That is the logic of +Protección, a voluntary savings solution that the company designed within the principles of behavioral sciences as in response to the necessity of pension supplementation within the country.
“From this perspective, +Protección rewards the continued savings through a return of part of the annual commission, as long as no withdrawals were made within the current year. In addition, it provides the option to establish special accounts so that employers can join their collaborators savings goals, with contributions that will only be available at retirement age” details the president of Protección.
Beyond promoting a specific solution, Protección is accompanying over 200.000 companies and their collaborators in the design of a complementary retirement plan based on the analysis of social, demographic, economic, tax and actuarial variables. Thus, the design can include individual solutions such as +Protección or institutional complementary savings plans for executives or all employees within a company.
The companies and clients interested in receiving this support in the design of the complementary pension plan can contact the service channels enabled by the company or enter https://www.proteccion.com/contenidos/persona/ahorro/mas-proteccion/
About Protección: Protección S.A. is an expert company in savings and investments, it has 30 years of experience in the administration of resources for more than 130 trillion pesos from 8,3 million clients of severances, and mandatory, voluntary pensions and over 73 thousand pensioners. The company has transcended in its category, dynamizing the businesses vision and the handling of assets destined towards mandatory pensions and severances, to take it to a next level implies the mobilization and management of savings to be an ally of its groups of interest with the purpose to accompany them in the fulfillment of their dreams and construction of their future.