The Chilean Pension System: Actuarial Analysis of a Paradigmatic Social Security Program

In 1981, Chile implemented a major reform to its pension system. This changed from a system financed by a pay-as-you-go scheme —with defined benefits and administrated by the State— to another financed by an individual capitalization regime, with defined contributions and private administration. The...

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Detalles Bibliográficos
Autor: Sáenz-Guillén, E.L. (Emilio Luis)|||/items/fe166349-8a53-4f3b-a887-d93826806ff7
Tipo de recurso: tesis de maestría
Fecha de publicación:2021
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dnet:dadun_______::65331a1e1816d24c663c8caec1f57e83
Acceso en línea:https://hdl.handle.net/10171/124147
Access Level:acceso abierto
Palabra clave:Chile
Pension Systems
Individual Capitalization
Administradoras de Fondos de Pensiones
Descripción
Sumario:In 1981, Chile implemented a major reform to its pension system. This changed from a system financed by a pay-as-you-go scheme —with defined benefits and administrated by the State— to another financed by an individual capitalization regime, with defined contributions and private administration. The present work thoroughly examines, from an actuarial perspective, the functioning of the Chilean pension system, providing pro-found insights into the implementation of prefunded pension schemes into social security systems. While, the equilibrium of the system is not thrown into question, there is an evident issue of sufficiency of the benefits granted. With regard to pension amounts assessment, interest rates are considered to constitute a crucial variable to take into account, and therefore an accurate forecast of such is desirable. All in all, pension systems are currently set down at the center of the debate on social protection, where world-wide population aging and the decay of fertility anticipate serious consequences on social structures, and are posed as one the majors forthcoming challenges. In this sense, individual capitalization schemes constitute a sustainable alternative to current European pay-as-you-go systems.