Smart use of severance pay in Colombia can be a great way to save money and prepare for the future. Severance pay is an important part of Colombian workers' wages and, if used appropriately, can help improve long-term financial security.
In Colombia, layoffs are a form of savings that are deducted monthly from workers' salaries and accumulated in a pension fund. The fund is managed by entities authorized by the Government and can be used by workers to finance their retirement or to obtain loans in times of need.
However, many people do not use their severance pay properly and instead use it for immediate expenses instead of saving for their future. According to the Perception survey on Pension and Severance Funds (2022) of the Centro Nacional de Consultoría, for 98% of those surveyed it is very important to have the freedom to choose who manages the funds.
How do I use my layoffs?
To make the most of layoffs, it is important to keep in mind some tips for intelligent use of these funds. First of all, it is important to understand that layoffs are a form of long-term savings and that they must be used with that mentality. Also, it is important to look for a pension entity that offers good interest rates and adequate protection of the funds, you can request the help of a financial adviser. In addition, it is important to regularly review the status of layoffs and ensure that they are accruing at an appropriate rate. Finally, it is important to keep in mind that layoffs can be a valuable source of financing in times of need, such as buying a house or a car.
However, it is important to be careful not to overuse the funds and leave enough for retirement. In short, smart use of severance pay in Colombia can be a great way to save money and prepare for the future. With a little planning and a long-term focus, layoffs can be a valuable tool for improving financial security. Article taken from valoraanalitik.com
By: Paula Murcia