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Pension funds in Chile: bringing the state back in

Author

Listed:
  • Anna Zabkowicz

    (Jagiellonian University in Krakow)

Abstract

Motivation: The privatized and capitalized old-age insurance in Chile has recently witnessed 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 presents 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.

Suggested Citation

  • Anna Zabkowicz, 2019. "Pension funds in Chile: bringing the state back in," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(1), pages 97-110, March.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:1:p:97-110
    DOI: 10.12775/EiP.2019.008
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    References listed on IDEAS

    as
    1. Ajit Singh, 1998. "Pension Reform, the Stock Market, Capital Formation and Economic Growth: A Critical Commentary on the World Bank’s Proposals," Istanbul Stock Exchange Review, Research and Business Development Department, Borsa Istanbul, vol. 2(8-7), pages 51-78.
    2. Carmelo Mesa‐Lago & Fabio Bertranou, 2016. "Pension reforms in Chile and social security principles, 1981–2015," International Social Security Review, John Wiley & Sons, vol. 69(1), pages 25-45, January.
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    More about this item

    Keywords

    political economy of pension reforms; funded pensions; solidarity benefits;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;

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