BEPS is a Periodic Economic Benefits program, that is, voluntary savings for people who cannot complete the requirements to retire.
This benefit offers a lifetime income or lifetime annuity to individuals. It should be noted that it does not replace a pension, but it is an alternative for people who do not meet the requirements to retire. Its objective is to ensure that citizens have a peaceful old age when they stop working.
It offers people flexibility in the amount and frequency when saving money for their old age. Your contribution allows informal workers to enter the formal financial system.
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How much do people receive from BEPS in 2024?
The maximum value to receive is 85% of a current legal monthly minimum wage, and is received every two months, depending on the savings accumulated so far. This value in 2024 is equivalent to $1,105,000 Colombian pesos.
Also, BEPS have an annual increase depending on the cost of living and receive returns equivalent to the Consumer Price Index each year.
How to ‘pension’ with BEPS?
To access the system Periodic Economic Benefits It is necessary to be a Colombian citizen over 18 years of age, not meet the requirements to retire and generate income less than the minimum wage. The beneficiary can receive his accumulated savings upon reaching the age established in Colombia to retire.
The maximum annual savings amount is $1,620. 000, and the minimum collection is $10,000. If the person does not accumulate enough savings, the program will return all their savings with the returns generated.
How to save on BEPS?
People who belong to this program must approach the Authorized Collection Points around the country. In which the money is received in cash, it can be carried by the account holder or a family member.
The only thing that is needed is the ID number, the date of birth and the amount to be deposited. Please remember to verify and retain proof of each transaction.
How do pensions work in Colombia?
Currently, in Colombia there are two pension regimes, one of Individual Savings with Solidarity (RAIS) and the Average Premium (RPM). Likewise, there are three types of pensions:
Old age: To obtain the pension, men must be 62 years old and women 57 years old. In addition to having 1,300 weeks of contributions.
Disability: This pension is received in the event of an illness or accident, which permanently disables the person from working. It is received for life if the person contributed for 50 weeks, continuous or discontinuous, in the last three years prior to the situation.
Survivors: The deceased person’s pension is granted to spouses, permanent partners, minor children, student children between 18 and 25 years old, disabled children, and parents who are financially dependent on the deceased.
