Prominent economist calls push to raise retirement age a ploy
Santo Domingo.- Prominent economist Victor Manuel Peña on Sunday said the Pension Fund Administrators’ (PFA) call to raise the retirement age from 60 to 65 is neither justified nor necessary.
He called the PFA’s position a ploy, given the fact that Congress is poised to cut their current “very high” 30% commission to 15%, and that the PFA’s arguments crumble under thorough analysis.
“The country’s increased life expectancy in two or three years never justifies a change of the retirement age,” Peña said, noting that European countries haven’t raised the retirement age despite their longer life expectancy.
Peña said Western Europe has reformed its retirement age because of the financial crisis unleashed by the massive public debt crisis and a financially unsustainable welfare system, among other factors.
“While Europe’s social security system is based on distribution, in Dominican Republic’s is based on individual capitalization,” and rests almost entirely on workers savings.
“Another thing is that there’s no public debt crisis in the Dominican economy,” Peña said, and cautioned lawmakers “not to fall into that trap or trick.”
Category: DR News |