MercoPress. South Atlantic News Agency
Bachelet forced to introduce reforms to Chile's private pension system
Under pressure from the public, Chile’s President Michelle Bachelet proposed changes to the most radical of all the economic reforms of former dictator Augusto Pinochet — the private pension system that inspired a wave of similar projects worldwide. Read full article
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Disclaimer & comment rulesHorror!
Aug 12th, 2016 - 04:19 am - Link - Report abuse 0The Commies are coming!
Where is Marti when we need him?
I thought the Chilean model was an unmitigated success as a country?
Let's see:
”The (pension) system was...lauded by Republican candidates in the U.S. (but) has proved a heavy burden for ordinary Chileans, who feel abandoned in their old age...”
Then the detractors' whining about Chile's deep social inequality may hold true in the end?
Enrique, there is no perfect way to design a pension system. Every county in the world struggles with this matter. Furthermore pension systems have to evolve with economic changes, and we have had huge economic changes.
Aug 15th, 2016 - 01:07 pm - Link - Report abuse 0You might be ideologically opposed to the way our AFP system worked, but it was the right system for Chile at the time and the changes that are to be made now can be seen as needed improvements to meet changing demographics and public expectation. Chilean life expectancy is now 10 years greater than it was when the AFP was implemented. This is a massive change in the loading of the pension system.
Some posters forget (or don't know) where we were 30 years ago. I have seen the changes during my life, but don't take my word, look at the objective data. The AFP was key in the economic growth of Chile in the last 30 years - that now means we live longer, are more socially developed and wealthier than our neighbours. You have to lay the foundations first, then the walls...
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