Financial Services Advisor

Alfonso De Urresti, member of the Chilean Senate: “Undoubtedly, the pension system will be one of the issues that the Constitutional Convention will discuss. The main problems have more to do with the fact that it is a forced savings system that has been used as a permanent source for the capital market, rather than simply a social security system. As socialist senators have been proposing since 2018, we believe that what is needed is a new mixed pension system, with an incentive to save, but framed in a social security scheme. This would initiate a transition to a pension system transforming the current individual capitalization system into one made up of four pillars: a basic solidarity pillar, a collective solidarity capitalization pillar, an individual capitalization pillar and a voluntary savings pillar, all with intergenerational solidarity. The political conformation of the Constitutional Convention should not be a problem for the substantive discussion that allows moving toward a new system, which will undoubtedly have a state component, in which it is feasible to contemplate some…”