Severance savings in Colombia's pension funds reached $26.1 trillion by the end of 2025, a 17% increase from 2024. This figure accounts for the accumulated savings of 10.8 million affiliates to four main funds. Total withdrawals amounted to $11.7 trillion, up 9.4%.
Asofondos, the pension funds association, reported that severance savings hit $26.1 trillion by the end of 2025, marking a 17% growth compared to the previous year. This amount represents the accumulated savings of 10.8 million workers affiliated with Colfondos, Porvenir, Protección, and Skandia funds.
Regarding withdrawals, the four funds disbursed $11.7 trillion in 2025, a 9.4% rise from 2024. The leading cause was contract terminations, with $4.1 trillion paid out—36% of the total and up 7.5% year-over-year.
Colombians also tapped their savings for housing needs, withdrawing $3.3 trillion to improve or pay off housing debts and $2.9 trillion for home purchases. These categories accounted for about 54% of all withdrawals.
Education was another key area, with $1 trillion withdrawn, making up 8.5% of the total and showing a 17.9% increase from 2024. "Severance pay has been a great support for workers, a demonstration of the benefits of formal employment and employers' efforts to honor this social benefit," stated Andrés Velasco, president of Asofondos.
These figures highlight the severance system's role as a social safety net amid formal employment in Colombia.
