Abstract
This paper provides an analysis of Chile's 35 year experience with defined contribution, fully funded pensions and argues that this pension approach should not be emulated by countries seeking to reduce the state role in the provision of pensions. The paper shows that 35 years of privatized pensions have led to a massive accumulation and concentration of capital and profits in the hands of the pension fund administrators and insufficient and unequal pensions for the retirees. This legacy of the Pinochet dictatorship has experienced marginal reforms after the transition to democracy. However, those reforms have not altered the system's structure and have augmented the fiscal role as the state attempts to repair some the most damaging outcomes of the private pension scheme.
DOI
10.1080/21699763.2016.1148623
Publication Date
2016-03-08
Publication Title
Journal of International and Comparative Social Policy
Volume
32
Issue
1
Publisher
Taylor & Francis
ISSN
2169-978X
Keywords
Chile, Latin America, Social security, Privitization of pensions, Retirement income, Fully funded, Defined contributions pensions, Social policy
First Page
57
Last Page
73
Recommended Citation
Hyde, M., & Borzutzky, S. (2016) 'Chile's private pension system at 35: impact and lessons', Journal of International and Comparative Social Policy, 32(1), pp. 57-73. Taylor & Francis: Available at: https://doi.org/10.1080/21699763.2016.1148623
