The Chilean Pension Reform Turns 25: Lessons from the Social Protection Survey

In 1980, Chile dramatically reformed its retirement system, replacing what was an old insolvent PAYGO program with a new structure that relies heavily on funded defined contribution individual accounts. In addition, eligibility and benefit requirements were standardized, and a safety net for old-age poverty was strengthened. Twenty-five years after this reform, the Chilean model is being re-assessed, in terms of coverage, contribution, investment, and retirement benefit outcomes. This paper introduces a recently-developed longitudinal survey of individual respondents in Chile, the Social Protection Survey (or Encuesta de Prevision Social, EPS), and illustrates some uses of this survey for microeconomic analysis of key aspects of the Chilean system.

[1]  E. James,et al.  The payout stage in Chile: who annuitizes and why? , 2006 .

[2]  Annamaria Lusardi,et al.  Financial Literacy and Planning: Implications for Retirement Wellbeing , 2005 .

[3]  Solange Berstein,et al.  Cobertura, densidad y pensiones en Chile: Proyecciones a 20 años plazo , 2005 .

[4]  Solange Berstein,et al.  Sensibilidad de la Demanda con Consumidores Desinformados: El Caso de las AFP en Chile , 2005 .

[5]  S. Prieto.  PARA AUMENTAR LA COMPETENCIA ENTRE LAS AFP 1 , 2005 .

[6]  R. Rofman,et al.  A Quarter Century of Pension Reform in Latin America and the Caribbean: Lessons Learned and Next Steps , 2005 .

[7]  Truman G. Packard,et al.  Keeping the Promise of Social Security in Latin America , 2004 .

[8]  Jere r. Behrman,et al.  Characteristics of and Determinants of the Density of Contributions in a Private Social Security System , 2004 .

[9]  M. Murthi.  The Role of Annuity Markets in Financing Retirement. , 2003 .

[10]  O. Mitchell,et al.  Perspectives from the President's Commission on Social Security Reform , 2003 .

[11]  A. Lusardi.  Planning and Saving for Retirement , 2003 .

[12]  Jeffrey B. Liebman,et al.  The distributional aspects of social security and social security reform , 2002 .

[13]  Alan L. Gustman,et al.  Imperfect Knowledge, Retirement and Saving , 2001 .

[14]  Alberto Arenas de Mesa.  Cobertura previsional en Chile: lecciones y desafíos del sistema de pensiones administrado por el sector privado , 2000 .

[15]  Alberto Arenas de Mesa.  Proyecciones del déficit previsional chileno: gasto público en pensiones asistenciales 1999-2010 , 2000 .

[16]  Robert Holzmann.  Extending coverage in multi-pillar pension systems : constraints and hypotheses, preliminary evidence and future research agenda , 2000 .

[17]  J. Shoven.  Administrative Aspects of Investment-Based Social Security Reform , 2000 .

[18]  A. A. de Mesa,et al.  The privatization of social security and women's welfare: gender effects of the Chilean reform. , 1999, Latin American research review.

[19]  Alejandro García,et al.  Pensiones en América Latina , 1998 .

[20]  P. Heller.  Rethinking Public Pension Reform Initiatives , 1998, SSRN Electronic Journal.

[21]  A. Bonilla,et al.  Pensiones en América Latina : dos décadas de reforma , 1998 .

[22]  F. Bertranou,et al.  Learning from social security reforms: Two different cases, Chile and Argentina , 1997 .

[23]  J. Gruber.  The Incidence of Payroll Taxation: Evidence from Chile , 1995, Journal of Labor Economics.

[24]  O. Mitchell,et al.  After Chile, What? Second-Round Social Security Reforms in Latin America , 1997 .

[25]  L. Kotlikoff.  Simulating the Privatization of Social Security in General Equilibrium , 1996 .

[26]  R. Holzmann.  Pension Reform, Financial Market Development, and Economic Growth: Preliminary Evidence from Chile , 1996, SSRN Electronic Journal.

[27]  O. Mitchell,et al.  "Social Security Privatization: A Structure for Analysis" , 1996 .

[28]  M. Feldstein.  The Missing Piece in Policy Analysis: Social Security Reform , 1996 .

[29]  Julio Bustamante Jeraldo.  El sistema chileno de pensiones , 1996 .

[30]  E. James.  Averting the old age crisis , 1995 .

[31]  R. Holzmann.  Funded and Private Pensions for Eastern European Countries in Transition , 1994 .

[32]  Salvador Zurita.  Minimun Pension Insurance in the Chilean Pension System , 1994 .

[33]  C. Mesa-lago,et al.  Changing social security in Latin America : toward alleviating the social costs of economic reform , 1994 .

[34]  M. Guerra.  Quince años después , 1994 .

[35]  P. Diamond.  Privatization of Social Security: Lessons from Chile , 1993 .

[36]  A. Palau,et al.  Sistema de pensiones en América Latina: Chile: experiencia con un régimen de capitalización 1981-1991 , 1991 .

[37]  Gert. Wagner.  La seguridad social y el programa de pensión mínima garantizada , 1991 .

[38]  O. Mitchell.  Worker Knowledge of Pension Provisions , 1987, Journal of Labor Economics.

[39]  Ricardo D. Paredes,et al.  Modelos de capital humano y segmentación: test y nueva evidencia , 1987 .

[40]  B. Bernheim.  Social Security Benefits: an Empirical Study of Expectations and Realizations , 1987 .

[41]  Carmelo Mesa-Lago.  El desarrollo de la seguridad social en América Latina , 1985 .

[42]  J. P. Arellano.  Políticas sociales y desarrollo : Chile, 1924-1984 , 1985 .

[43]  G. Reed.  Social security. , 1959, Hospital progress.

[44]  Métral,et al.  [Social Security reform]. , 1952, Concours medical.