Sergio Fajardo and Fico Gutiérrez agreed that the lack of formal work would be fueling the pension crisis

Colombian presidential candidates Sergio Fajardo, from the Coalition of Hope, and Federico Gutiérrez, from the Team for Colombia coalition, participated in the forum of the Colombian Association of Pension and Unemployment Fund Managers (Asofondos), which took place this Friday, April 22 in Cartagena.

At this private pension fund event, the two applicants shared their views on the situation of older Colombians who see their stability compromised because they are not protected by current forms of pension, plus the sustainability of the Colombian pension system so that adults benefit from it older people of the future.

He assured that the main problem of the pension system is not the pension itself, but informality in two respects: “labor informality, which is around 60%, but also the informality that exists in so many companies that cannot be incorporated”. In general terms, he rounded up the pension problem to a national economy issue.

To solve the problem of unincorporated companies, Gutiérrez proposed a program called My Company in One Day, which would reduce the requirements and time needed to set up a legal company. “Successful consolidation of a company today requires thirteen steps that take a few months. Go down from thirteen procedures to five procedures, which can be generated through a single platform, that can be formalized and that guarantees can be generated to form more employment,” said the candidate.

With regard to the pension system, he assured that it will maintain the mixed format that exists today, adding that the pension scheme must guarantee “coverage, equity and sustainability.” He also suggested increasing the amount of subsidies for seniors who remained outside the pension system, for which he proposed reducing subsidies that go to high pensions and raising the allowance for Colombia Mayor, which today stands at 80,000 pesos.

“Here we must ensure, above all, a reform in which we can have protection for old age and that these subsidies go precisely to the poorest. In the way that we can make a gradual transformation of that system, we will reach coverage, ending the four-year period, to three million older adults who may have a subsidy base of 330 thousand pesos per month,” said the candidate.

He also suggested that it would reduce contribution periods from 25 to 22 years. However, he noted that there will be no change in the rights of people who are already earning pensions and who are in their last ten years of contributions. The changes would be effective with the pensions of other citizens, with the purpose of “guaranteeing that pension also to young people who come behind”.

The former mayor and former governor assured that one in four Colombians over the age of 65 does not have any form of pension. “a just society cannot be built around that way of caring for the elderly,” said Sergio Fajardo.

His proposal to resolve this situation is to extend financial support of 500,000 pesos to all persons of that age group who do not have resources and were excluded from the pension system. In addition, he proposed a universal basis for the medium premium scheme: anyone who accrues more than two million pesos would enter into the individual savings scheme with solidarity (RAIS).

On the other hand, Fajardo suggested that he would not make changes to the retirement age and that one of Colombia's problems lies in the lack of jobs. Then, he assured that with the change of production model that he proposes, one and a half million formal jobs would be created.

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