Pension funds in Chile: bringing the state back in
Pension funds in Chile: bringing the state back in
Author(s): Anna ZąbkowiczSubject(s): Economy, Public Finances
Published by: Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika
Keywords: political economy of pension reforms; funded pensions; solidarity benefits
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.
Journal: Ekonomia i Prawo. Economics and Law
- Issue Year: 18/2019
- Issue No: 1
- Page Range: 97-110
- Page Count: 14
- Language: English