Mon. Oct 26th, 2020

Financial Planner

Tips, tricks and guidline for financial planner

Different ways to secure a fixed money for your future

I’m never going to think about it have you heard this phrase? Sure, that yes his grandfather once said it his parents too and you do not fall behind just like your co workers and their friends. It is always said that the system deteriorates that a pension reform is needed and that young people have to look for some additional income to survive in their old age.

fixed money

Many are the reasons that cause the problems in the system starting with the population pyramid in recent years, as the population is not currently being renewed at the pace required by the current pension model. Older people get older while newborns are less. This is evident when comparing the older population of the years 1985 with the one of 2017 (that is between the 60 and more than 80 years of age according to the information that the DANE reports. It is observed that older adults have increased 4.72%, while newborns (between 0 and 4 years) are decreasing and in 2017 are 4.56% less than in 1985.

What happens is that if there is no pension reform in the very near future there may be any young people making payments sustainable for the number of people who are going to require a pension. Especially in the case of the premium, scheme Media, which functions as a common stock exchange where people who contribute today are paying the pensions of those who are retired.

According to, the aging of the population due to higher life expectancies and lower birth rates has an impact on sustainability it is estimated that between the years 2015 and 2020 life expectancy will reach 75 years in Colombia, when in 1985 this was 70 years.

On the other hand, another problem that affects the system is informality, with only 33.4% of employed persons contributing to pensions as well as evasion of payments about 3 million workers are in health but not they make a pension. An additional fact is that this year in Colombia only 23% of the population of retirement age receives a pension.

Pension insurance

Comprehensive pension solutions explains that pension insurance is one that covers contingencies that can be disability old age or death and that these are a right that all people Affiliates who are paying pension contributions either in the average premium scheme or in the individual savings scheme.

These specifications can be found regulated in Law 100 of 1993, which ensures that all members are entitled to recognition and payment of disability, old age and survivors pensions. As well, as regulates the income that will receive the pensioners each year, which is readjusted every year on January 1, according to the variation of the CPI of the previous year.