Latin America Advisor

Financial Services Advisor

A Publication of The Dialogue

Will Chile Make Major Changes to its Pension System?

Chilean President Gabriel Boric has sought broad reforms to the country’s pension system. // File Photo: Chilean Government.

This month, Chile’s Senate is planning to begin debate on reforms to the country’s pension system, a major goal of President Gabriel Boric’s administration. The lower house gave provisional approval to a pension reform in January, though it rejected several of the government’s proposals, leaving the details of the reform largely to the Senate. How well does Chile’s pension system, which is managed by private investment funds, currently operate? What are the prospects for a reform passing the Senate, and what are the most likely changes it would make to the pension system? What’s at stake in the debate over the reform for Chile’s pensioners and the companies currently involved in managing the system?

Kathleen C. Barclay, director of AmCham Chile: “Chile has a mixed pension system including individually funded savings (AFPs) and a universal minimum pension (UMP) funded from general taxation. Key elements of the government’s reform include raising savings through an additional 6 percent employer contribution—3 percent for individual accounts and 3 percent for solidarity purposes; an industry restructuring including an enhanced role for the state, separation of funds management and administrative functions along with competitive bidding for the existing stock of AFP affiliates, all of which aim to increase competition as well as an increase in the UMP. The proposal does not address the need to…”

Read More

Top News



BBVA Technology Expands Into Latin America

The technology division of Spanish bank BBVA said March 5 that it will expand its operations to Latin America. The bank said it had named Robert Altes as the CEO of the technology division’s Americas unit. // File Photo: LinkedIn profile of Robert Altes.
Read More


Complete editions of the Financial Services Advisor are delivered on a biweekly basis to members of the Dialogue's Corporate Program and other subscribers. Sign up below for a free complimentary preview subscription.

Free Preview


About the Financial Services Advisor

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.


Subscribers See all


Staff

Gene Kuleta

Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David Goette-Luciak

Reporter

Nili Blanck

Reporter