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Chile: 63% agree with the creation of a state AFP that competes with private administrators
Monday, June 10, 2024 - 10:30
crédito foto CADEM

Furthermore, 77% prefer that people be able to choose whether they want a state institution or an AFP to manage and invest their funds.

The Chilean public survey and studies firm, CADEM, published a study that shows the preference of Chileans for a state AFP to compete with private pension fund administrators.

The news comes out in a context where the Boric government continues to insist on a change to the pension system, more oriented towards pay-as-you-go, and where they are working on an additional 6% contribution that would be, in theory, a solution to the low pensions that today delivers the private system.

In this context, 77% prefer that people be able to choose whether they want a state institution or an AFP to manage and invest their funds.

Regarding the destination of the additional contribution of 6 points, which will be paid by the employer, 54% (-3pts) would prefer that it go entirely to the worker's individual account and only 11% (+2pts) that it go entirely to a common solidarity fund . 34% (+4pts) are in favor of it being distributed and among them, 53% (+5pts) would do it in equal parts and 32% prefer that the majority go to the worker's account.

35% agree and 48% disagree with the pension reform presented by the government. In this context, 41% knew or heard about the TV and social media commercial made by the Executive about the project and 59% think it is bad considering that the reform has not been approved in Congress.

Regarding the value debate, 75% (+5pts) agree with euthanasia and only 28% (+5pts) with free abortion under any circumstances. Support for abortion on three grounds also registered an increase of 4pts to 79%, its highest level since 2015.

Furthermore, 77% (+5pts) agree that homosexual couples have the right to marry, 65% (+6pts) that they can adopt children, 55% (+11pts) that minors, with the authorization of their parents , can change their gender identity and only 29% apply puberty blockers to minors who want to change their sex.

Finally, in the first week of June, 32% (+1pt) approve and 61% disapprove of President Boric's management, without significant changes.

PENSION REFORM

35% agree and 48% (-3pts) disagree with the pension reform presented by the government.

The issues considered priority in a reform of the pension system are being able to withdraw money in extreme situations, such as a terminal illness (57%), increasing workers' contributions by 6% at the expense of the employer (37%) and that, compared to losses of profitability, the AFPs do not charge commissions.

Regarding the destination of the additional contribution of 6 points, 54% (-3pts) would prefer that it go entirely to the employee's individual account, 34% (+4pts) that it be distributed and only 11% (+2pts) that it go in its entirety to a common solidarity fund.

Among those who prefer it to be distributed, 53% (+5pts) would do so in equal parts, 32% (-7pts) would leave the majority, 4 or 5 points, to individual account and 12% (+1pt) would leave the majority to a common fund.

Regarding the administration and investment of pension funds, 77% are because people can choose whether they want a state institution or an AFP, 11% prefer only a state public entity and 10% only a private institution like the AFPs.

In that sense, 63% (-1pt) agree with the creation of a state AFP and 32% (-1pt) disagree.

78% disagree with delaying the retirement age, especially those over 55 years of age (82%), people from low socioeconomic segments (85%) and those who identify with the center (84%), the left (81 %) and independent (81%).

41% knew or heard about the TV and social media commercial made by the Executive about the pension reform project and 59% think it is bad considering that the reform has not been approved in Congress.

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