Pension funds in Chile: bringing the state back in
Pension funds in Chile: bringing the state back in

Summary/Abstract: Motivation: The privatized and capitalized old-age insurance in Chile has recently wit-nessed reforms under President Bachelet which extended the social safety net as well as re-introduced publicly-administered programs on behalf of retirees.Aim: The article reviews the performance of the system up to the most recent reform in aim to understand economic and political reasons for bringing the state back in, and pre-sents results of pension engineering in a systematic way in attempt to estimate the scope of change.Results: Bringing the state back into Chile’s pension system can be viewed as a plan to subsidize total retirement benefits in order to improve the distressing rates of replacement and, in such indirect way, to support the longevity of privately-managed pension funds.

• Details
• Contents