No! There were banks that offered people lower interest rates for depositing their money and leaving it there long-term, and people accepted simply because of the misguided notion that "Your money is safer in the bank."

The system simply pushes you to keep falling into the same trap...

did they get a better deal or interest rate when redepositing?

stack_harder

Here in Peru, since the supposed pandemic and over the last five years, the government has passed or imposed laws allowing pensioners to withdraw all their money from the "AFPs"—that's what they call the pension system here!

And I've seen elderly people withdraw a significant amount of their life savings and go straight to the bank and deposit it with the most "pleasant and wonderful" advertising...

AskSN

econ

How would you unwind the social security/ pension time bomb?

Here in Peru, since the supposed pandemic and over the last five years, the government has passed or imposed laws allowing pensioners to withdraw all their money from the "AFPs"—that's what they call the pension system here!

And I've seen elderly people withdraw a significant amount of their life savings and go straight to the bank and deposit it with the most "pleasant and wonderful" advertising...

And the endless cycle begins again...