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  • Writer's pictureCarolina Pérez

10% Pension Fund Withdraw = 10% Bitcoin Investment

Covid-19 has not only taken millions of lives; it has also shaken the world's economy. This pandemic has also made countries have to declare different policies to help those in need. Various strategies have been implemented around the world because of the struggle that so many unemployed citizens are facing.

Every country works differently, and every country has decided to help out their people in different ways. For example, the U.S chose to print money, give everyone, and bail out businesses and large corporations. In other parts of the world, these levels of help from the government have not happened, and if it has, it would be nothing compared to the U.S.

In Chile, the government has granted a small amount of monetary help to the poorest sectors of the Chilean population, the help given is approximately 50 USD. They also came up with a way to be suspended from work and paid with the money that workers have saved up in their unemployment fund. Once your unemployment fund runs out, you would receive money from the government that would decrease month by month; Other efforts, such as boxes of food that have been delivered to citizens and recently they have announced the government would be loaning money with special conditions because of COVID.

Nonetheless, it is no secret that all these measures have not been sufficient considering this past June unemployment in Chile hit a historical mark of 11,2%, the highest in 16 years.

The idea of ​​withdrawing 10% of your AFP (Pension Fund Administrators) funds has recently been proposed. In Chile, every worker who works and has a contract is discounted a monthly percentage of their salary, and this percentage goes to the pension fund of each worker that may be used under government restrictions once they retire. Therefore, a person works almost all their life, and when they retire, they do not have access to all of their funds. Retirement money is gradually paid according to the percentage of savings the person has.

Currently, this is a great controversy in Chile, since, without a doubt, the people need help, and if the government has not delivered the prompt and necessary support, this would be a viable option. However, as in everything related to the government, the high command of the government, including the president, do not agree with this measure, because it will diminish the fund you will have when you retire. Others argue that regardless of this, the money belongs to the people, people who have savings in pension funds, and who have generated a lot of money for business by investing and working with people's money. They rather loan you money then you being able to withdraw from your fund.

Investing because you are obligated to do so, and not only that, you are obligated, and you have restrictions over your money. Your money. Not the government's money, but your fair and square money. It would help if you had the possibility of accessing your funds or being able to access them fully; however, you need once you retire. This is why everyone should without a dought invest, invest in your future, but hopefully invest in an entity where you have complete control of your money.

This is why Bitcoin works as an investment. You invest and don't rely on third entities to hold your money or do whatever suits them with your money. You can buy cryptocurrencies and hold them on your digital wallet without it being at the government's will.

So, if you are not in desperate need of this 10%, you should still withdraw and buy bitcoin or invest in whatever suits you, but regain control of your money!

By: Carolina Pérez

Twitter: @carolinaninap

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