The three withdrawals from pension funds injected almost US$ 50.000 billion into the market bringing with them inflationary pressures in the short and medium term, a decision that was harmful to people and companies. On the economic side, more than half of domestic inflation is due to the three withdrawals, decreasing the value of people´s money and increase the interest rates. On the pension side, eleven million people managed to withdraw their money and almost four million people were left without their funds. For women a drop of 33% in the amount of the future pension and for men a 24% on average. And on the financial side, a destruction of the capital market causing a significant drop in assets prices and companies to stop investing in big projects in Chile. During 2023, a new project was carried out on a new withdrawal of pension funds but it the form of a self-loan, a benefit that would have between one million and ten million Chilean pesos saved in their accounts to withdraw up to one million Chilean pesos. The purpose of this work is to see the effects of a possible fourth withdrawal from pension funds. And we conclude that an upcoming retirement has three consequences. In the economic sense, it would bring with another increase in the monetary base, which in turn translates into an increase in inflation. In the sense of pensions, more than three million people would again run out of funds and would cause a potential additional 16% drop in the amounts of future pension affecting the current saving of contributors. Finally, in the financial sense, the capital markets would be destroyed, causing a significant drop in assets prices and companies to stop investing in big projects in Chile.
| Published in | Economics (Volume 13, Issue 3) |
| DOI | 10.11648/j.eco.20241303.11 |
| Page(s) | 71-75 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Inflation, Pensions, Injected Money, Capital Market, Economy
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APA Style
Martínez, H. B. (2024). Effects of an Eventual Upcoming Withdrawal of Pension Funds. Economics, 13(3), 71-75. https://doi.org/10.11648/j.eco.20241303.11
ACS Style
Martínez, H. B. Effects of an Eventual Upcoming Withdrawal of Pension Funds. Economics. 2024, 13(3), 71-75. doi: 10.11648/j.eco.20241303.11
AMA Style
Martínez HB. Effects of an Eventual Upcoming Withdrawal of Pension Funds. Economics. 2024;13(3):71-75. doi: 10.11648/j.eco.20241303.11
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Download@article{10.11648/j.eco.20241303.11,
author = {Hernán Bustos Martínez},
title = {Effects of an Eventual Upcoming Withdrawal of Pension Funds
},
journal = {Economics},
volume = {13},
number = {3},
pages = {71-75},
doi = {10.11648/j.eco.20241303.11},
url = {https://doi.org/10.11648/j.eco.20241303.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20241303.11},
abstract = {The three withdrawals from pension funds injected almost US$ 50.000 billion into the market bringing with them inflationary pressures in the short and medium term, a decision that was harmful to people and companies. On the economic side, more than half of domestic inflation is due to the three withdrawals, decreasing the value of people´s money and increase the interest rates. On the pension side, eleven million people managed to withdraw their money and almost four million people were left without their funds. For women a drop of 33% in the amount of the future pension and for men a 24% on average. And on the financial side, a destruction of the capital market causing a significant drop in assets prices and companies to stop investing in big projects in Chile. During 2023, a new project was carried out on a new withdrawal of pension funds but it the form of a self-loan, a benefit that would have between one million and ten million Chilean pesos saved in their accounts to withdraw up to one million Chilean pesos. The purpose of this work is to see the effects of a possible fourth withdrawal from pension funds. And we conclude that an upcoming retirement has three consequences. In the economic sense, it would bring with another increase in the monetary base, which in turn translates into an increase in inflation. In the sense of pensions, more than three million people would again run out of funds and would cause a potential additional 16% drop in the amounts of future pension affecting the current saving of contributors. Finally, in the financial sense, the capital markets would be destroyed, causing a significant drop in assets prices and companies to stop investing in big projects in Chile.
},
year = {2024}
}
TY - JOUR T1 - Effects of an Eventual Upcoming Withdrawal of Pension Funds AU - Hernán Bustos Martínez Y1 - 2024/08/06 PY - 2024 N1 - https://doi.org/10.11648/j.eco.20241303.11 DO - 10.11648/j.eco.20241303.11 T2 - Economics JF - Economics JO - Economics SP - 71 EP - 75 PB - Science Publishing Group SN - 2376-6603 UR - https://doi.org/10.11648/j.eco.20241303.11 AB - The three withdrawals from pension funds injected almost US$ 50.000 billion into the market bringing with them inflationary pressures in the short and medium term, a decision that was harmful to people and companies. On the economic side, more than half of domestic inflation is due to the three withdrawals, decreasing the value of people´s money and increase the interest rates. On the pension side, eleven million people managed to withdraw their money and almost four million people were left without their funds. For women a drop of 33% in the amount of the future pension and for men a 24% on average. And on the financial side, a destruction of the capital market causing a significant drop in assets prices and companies to stop investing in big projects in Chile. During 2023, a new project was carried out on a new withdrawal of pension funds but it the form of a self-loan, a benefit that would have between one million and ten million Chilean pesos saved in their accounts to withdraw up to one million Chilean pesos. The purpose of this work is to see the effects of a possible fourth withdrawal from pension funds. And we conclude that an upcoming retirement has three consequences. In the economic sense, it would bring with another increase in the monetary base, which in turn translates into an increase in inflation. In the sense of pensions, more than three million people would again run out of funds and would cause a potential additional 16% drop in the amounts of future pension affecting the current saving of contributors. Finally, in the financial sense, the capital markets would be destroyed, causing a significant drop in assets prices and companies to stop investing in big projects in Chile. VL - 13 IS - 3 ER -
Mention of Economics and Finance, University Andrés Bello, Viña del Mar, Chile
