Poor financial literacy is a major reason why people haven’t saved or invested more, and also why they have withdrawn so much from their pensions, Wharton Prof. Olivia S. Mitchell explains, discussing the struggles of the Chilean retirement system. Via La Tercera.…Read More
Rewriting Chile’s constitution could mean changes to the country’s fragile pension system. This may involve raising the retirement age, perhaps to 75 or 80, for those who have not been able to save for their old age, says Wharton Prof. Olivia S. Mitchell, via The Dialogue.…Read More
The ongoing COVID-19 crisis exacerbated existing retirement system problems. Part of the solution: working longer, new pension models, and decoupling retirement saving from firms, Wharton Prof. Olivia S. Mitchell explains to Diario Financiero, discussing her recent study.…Read More
Some Chilean lawmakers seek to nationalize the country’s pension system, which would set back economic development and erode Chileans’ trust in their economy. Wharton Prof. Olivia S. Mitchell, member of the 2014-15 Bravo Commission for Chilean Pension Reform, expresses concern to Gene Kuleta at The Dialogue.…Read More
Prof. Olivia S. Mitchell served on the 2014-5 Chilean Pension Reform Commission, explains that proposed pension reforms thus far will help but not solve Chile’s old-age system problems. Diario Financiero [paywall]…Read More
Chile provides a safety net for those who fall into poverty in old age, but it’s still an imperfect pension system that needs work.
Pay-as-you-go (PAYG) retirement programs in the U.S. and many European countries are struggling to remain solvent in the face of an aging population, fewer workers, and a shortfall in private savings. A different approach would strengthen individual savings accounts by requiring workers to contribute out of pre-tax income, combined with a redistributive means-tested safety net for those who fall into poverty in old age.…Read More
Since its launch 35 years ago, Chile’s retirement system has been hailed as “best in class” by pension experts near and far. The country’s fabled individual and privately-managed accounts include around 10 million affiliates, hold $160 billion in investments, and pay retirement benefits to over a million retirees. So why did President Michelle Bachelet establish a Pension Reform Commission that just delivered to her 58 specific reforms and three comprehensive proposals to overhaul remodel Chile’s retirement system?…Read More
