Savings, Colombians' best ally in times of uncertainty

Savings, Colombians' best ally in times of uncertainty
  • According to Edelman's Trust Barometer 2024, 93% of surveyed colombians indicated that their main current concern is losing their job.
  • Protección is calling on people to make decisions that strengthen their finances, by transforming their savings into a financial cushion for times of economic uncertainty. 
  • So far in 2024, 33% of the withdrawals of severance payments made by Protección's clients have been due to termination of contract, which positions them as a financial support mechanism in periods of unemployment. 
  • When managing savings and investments, it is advisable to always have a pocket for unforeseen events.
  • Protección in its voluntary savings portfolios offers liquidity options that allow same-day withdrawals, so that other investments are not affected in case of contingencies.

Barranquilla, 9 April 2024. According to Edelman*'s Trust Barometer 2024, the main economic fear of Colombians today is job loss. This study revealed that social fears are at the same level as personal economic fears. Today 93% of those surveyed consider the loss of their job as their main fear, followed by inflation with 77%. 

This result, which is in line with the latest update of the Social Pulse Survey of the National Administrative Department of Statistics (DANE), shows that the indicator of citizens' confidence in individual economic indicators has deteriorated. Faced with this situation, Protección reaffirms its commitment to the financial wellbeing of its clients and the rest of Colombians, emphasizing the importance of reading the environment and making conscious decisions aligned with individual and family financial wellbeing.

"The reality in which we live, and the fears of Colombians, underlines the responsibility we have to accompany citizens in making the best decisions for their future and to offer tools that allow them to navigate the economic cycles. Every step we take towards financial planning and savings brings us closer to peace of mind and future prosperity," says Angela Maya, Protección's Savings and Retirement Business Leader.

Fortunately, there is a tool to mitigate the impact of these unexpected expenses on the economic balance of a household. When it comes to unemployment, Colombian workers can count on their severance payments, that cushion that helps in the event of a reduction in family income as a result of a job loss. So far in 2024 alone, 182,000 clients of Protección have withdrawn close to half a trillion pesos to cover unemployment contingencies, which is equivalent to 33% of total unemployment withdrawals. 

"In February, the unemployment rate reported by the DANE was 11.7%, a figure that should not fill us with uncertainty, but rather invites us to be aware of the importance of saving and retirement. In addition to severance payments, there is the possibility of structuring an emergency fund or pocket, an essential tool for personal finances. This is a reserve of money that is used to meet sudden and extraordinary expenses," adds Ángela Maya. 

How much should the contingency fund or pocketbook be

In the management of savings and investment, it is always advisable to have a contingency pocket that allows the family group to maintain their quality of life for at least three months, which is the minimum time it can take for a Colombian to get back to work.

Assuming that in 2023 Colombian household spending totaled $748 billion, which meant that families spent an average of $3.5 million pesos per month, the emergency fund should be on average close to 10 million pesos per family group. 

With the aim of being an ally in building the financial wellbeing of its customers, Protección offers savings solutions such as MiReserva, designed especially for this type of contingency or unforeseen event, or investment solutions in which voluntary savings portfolios can be accessed, offering liquidity options that allow interesting returns and, if necessary, access to resources on the same day they are needed. In the first quarter of the year, the yields of Protección Vista reached 2.51% and those of Short Term Fixed Income reached 2.30%, two portfolios that are ideal for investing the resources of emergency funds. 

"Companies can also play a key role in this goal and contribute, through institutional plans, so that their employees can save for these purposes and also generate significant tax benefits in the payment of income tax, both for employees and companies. Protección is the market leader in the country in the design of Institutional Plans linked to the strategic objectives of human resources management of companies," Maya points out.

Clearly, voluntary pensions have become a mechanism that allows Colombians to take ownership of their future and make a better design of their finances from different objectives and moments in their lives. Currently, Protección manages $11.5 trillion pesos of voluntary savings of close to 550 thousand savers and investors, offering a portfolio of solutions that adjusts to each stage of their lives, risk profiles and investment horizon and purpose.  

In conclusion, in times of uncertainty, financial planning becomes a fundamental pillar to ensure long-term peace of mind and well-being. Protección is committed to continue providing advice and structured solutions that contribute to strengthening the financial future of its members.


About Protección 

Protección S.A. is an expert in savings and investment, with 30 years of experience in the management of resources of more than 130 trillion pesos from 8.3 million clients of the Mandatory, Voluntary and Severance Pension Funds and more than 73 thousand pensioners. The Company has transcended in its category, energising the focus of its business in the management of assets destined for mandatory pensions and severance pay, to take it to the next level that involves the mobilisation and management of savings to be an ally of its stakeholders with the purpose of accompanying them in the fulfilment of their dreams and the construction of their future. 

Press contact:

Juan David Posada, Communications Protección
Tel. 320 673 98 90
[email protected]

Andrea de la Torre, Edelman Colombia
Tel. 310 2104026
[email protected] 

Aura Quilindo, Edelman Colombia
Tel. 3146876183
[email protected]