Chile, independent workers and retirement.

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Larry B.
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Chile, independent workers and retirement.

#1 Post by Larry B. » Sat Jan 28, 2012 7:15 am

I'm fucking pissed off.

In Chile, when you work in any company, you get a % of your monthly wage discounted in order to save for your retirement. This money goes into a private company of your choice, which manages it and by when you're 60, 65 or 70 (depending on your plan), gives it back to you. This private companies have yearly profits of hundreds of millions of dollars, yet the retirements they provide are laughable. They also don't have to guarantee your money at all. If your fund yields -90%, that's just tough luck for you. And if you want your retirement money as a lump sum, there's a 15% of 20% charge.

So, as an independent worker, I decided long ago to not give my money to these companies. Instead, I save money and I invest it myself. That way, I win every bit of my profits and I'm 100% responsible for my losses.

A few weeks ago, the Chilean political system passed a law forcing every independent worker to give a % of their earnings to these private companies. No exceptions. The idea is that 'every worker should be protected and should have retirement money'. My point of view is that if I'm an independent worker, I should have the CHOICE. If I don't save, then it's my fucking responsibility.

Oh, and those who don't pay their monthly fee will have it discounted from their yearly tax return.

Thankfully, it will be optional until 2015. But still, I think it's very fucked up. Not because they take my money away, but because they give it to private companies that will not answer for this money. The government is basically forcing me to feed the pockets of multimillionaire companies. I would MUCH rather have my taxes raised in order to have some sort of public retirement fund. As many flaws as this country has, I would never stop paying my taxes and I'd love to have them raised if they'd help this society. Just don't make me work, earn money, pay taxes and then have part of that money sent to a PRIVATE company! If my money yields -30%, they'd do nothing; if it yields 400%, they'd apply a limit of most likely 25% (in order to avoid excess inflation or some other excuse) and keep the rest. FORCING me to do that?! Fuck no.

Most Chilean people pay 10% tax. Raise it to 13% and fix this shit.

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sinep
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Re: Chile, independent workers and retirement.

#2 Post by sinep » Sat Jan 28, 2012 1:59 pm

Larry B. wrote: A few weeks ago, the Chilean political system passed a law forcing every independent worker to give a % of their earnings to these private companies. No exceptions. The idea is that 'every worker should be protected and should have retirement money'. My point of view is that if I'm an independent worker, I should have the CHOICE. If I don't save, then it's my fucking responsibility.
because unskilled independent workers like yourself are shitty investors, so when you're 65, and you don't have money to retire on, the government has to have some sort of safety net for you to fall into, so you don't end up starving to death on the street.

it seems pretty simple and straight forward to me.

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Larry B.
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Location: Santiago

Re: Chile, independent workers and retirement.

#3 Post by Larry B. » Sat Jan 28, 2012 2:12 pm

I know; but if the government feels like I should have a safety net, they should provide it. They shouldn't mix this matter with private businesses. Raise taxes and guarantee that I'll have a decent retirement.

Fucking corporate government.

creep
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Re: Chile, independent workers and retirement.

#4 Post by creep » Sat Jan 28, 2012 10:33 pm

i like chilli and cornbread

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