Chile's president signed into law a reform to allow participants to withdraw 10% of their retirement savings to help cope with the impacts of the coronavirus pandemic.
Sebastian Pinera, president of the republic of Chile, enacted the reform late on July 24, a news release said.
The decision to authorize withdrawals from the plans, known as AFP funds, was made "given the difficult economic and social situation" for Chilean people, the translation of a news release published on July 23 said.
Chile's Chamber of Deputies — the lower house of the country's National Congress — passed the draft reform allowing for the withdrawal on June 23. A news release by the chamber said participants have a limit of 365 days after the reform is published to request withdrawals.
Chile's private retirement assets totaled about $200 billion as of 2018, according to the Organization for Economic Cooperation and Development.
In April, Chile's central bank raised the limit for alternatives investment made by certain retirement plans in Chile.
