Pension funds in Chile: bringing the state back in

Anna Ząbkowicz



Motivation: The privatized and capitalized old-age insurance in Chile has recently witnessed reforms under President Bachelet which extended the social safety net as well as re-introduced publicly-administered programs on behalf of retirees.

Aim: The article reviews the performance of the system up to the most recent reform in aim to understand economic and political reasons for bringing the state back in, and presents results of pension engineering in a systematic way in attempt to estimate the scope of change.

Results: Bringing the state back into Chile’s pension system can be viewed as a plan to subsidize total retirement benefits in order to improve the distressing rates of replacement and, in such indirect way, to support the longevity of privately-managed pension funds.


political economy of pension reforms; funded pensions; solidarity benefits

Full Text:



Barr, N. (2001). The truth about pension reform. Finance and Development, 38(3).

Barr, N., & Diamond, P. (2016). Reforming pensions in Chile. Polityka Społeczna, 1(12).

Bertranou, F. (2016). Pension benefits in Chile: is it possible to improve adequacy and solidarity? Paper presented at the ILO/IZA Conference on ‘Assessing the effects of labour market reforms — a global perspective’, Geneva, Switzerland.

BTI. (2016). Chile country report. Retrieved 06.02.2017 from

Cervera, A. (2014). Chile: pension fund snapshot as of May 2014. Retrieved 06.02.2017 from

Commission on the Pension System. (2015). Executive summary 2015. Retrieved 10.02.2017 from

Garcia-Huitron, M., & van Leuvensteijn, M. (2015). International pension reform diffusion: a tale about Chile and the Netherlands trying to learn from each other. Het Verzekerings-Archief, 4.

Garreton, M.A. (2012). Neoliberalismo corregido y progressimo limitado: los gobiernos concertacion en Chile 1990–2010. Santiago: Editorial Arcis.

IMF. (2016). Chile: staff concluding statement of the 2016 article IV mission. Retrieved 06.02.2017 from

Kritzer, B.E. (2008). Chile’s next generation pension reform. Social Security Bulletin, 68(2).

Mesa-Lago, C., & Bertranou, F. (2016). Pension reforms in Chile and social security principles, 1981–2015. International Social Security Review, 69(1). doi:10.1111/issr.12093.

Singh, A. (1996). Pension reform, the stock market, capital formation and economic growth: a critical commentary on the world bank’s proposals. International Social Security Review, 49(3). doi:10.1111/j.1468-246x.1996.tb01108.x.

Słowik, P. (2016). Prof. Oręziak: OFE nie są już u nas świętością. Wkrótce Polacy będą działać jak Chilijczycy. Retrieved 06.02.2017 from

Vasquez, I. (2016). The attack on Chile’s private pension system. Retrieved 06.02.2017 from

Wehlau, D. (2007). Lobbying for pension reform. Institutional investors as driving forces of pension privatization? Paper presented at the 14th workshop on alternative economic policy in Europe, Brussels, Belgium.

Ząbkowicz, A. (2014). Institutional interests and institutional change: Poland on the second wave of pension reforms. Equilibrium. Quarterly Journal of Economics and Economic Policy, 9(3). doi:10.12775/EQUIL.2014.024.

Ząbkowicz, A. (2016). A paradox of reforming pensions in Poland. Equilibrium. Quarterly Journal of Economics and Economic Policy, 11(3). doi:10.12775/EQUIL.2016.026.

Zorilla, R. (2016). Chile’s lower house raises solidarity pensions. Retrieved 06.02.2017 from

ISSN 1898-2255 (print)
ISSN 2392-1625 (online)

Partnerzy platformy czasopism