Chile’s retirement income system comprises means-tested social assistance; a mandatory privately-managed defined contribution system based on employee contributions with individual accounts managed by a small number of Administradoras de Fondos de Pensiones (AFPs); and a framework for supplementary plans sponsored by employers (the APVC schemes).
The overall index value for the Chilean system could be increased by:
- raising the level of mandatory contributions to increase the net replacement rate
- raising the level of household savings
- increasing retirement ages for both men and women
- continuing to review the minimum pension for the poorest pensioners.
|The Chilean index value fell from 69.1 in 2015 to 66.4 in 2016 primarily due to a reduction in the net replacement rate.|
|The Chilean index value increased from 68.2 in 2014 to 69.1 in 2015 due to the increase int he household saving rate which was partly offset by the impact of increased life expectancy.|
|The Chilean index value increased from 66.4 in 2013 to 68.2 in 2014 primarily due to an upward revision in the level of mandatory contributions and improvement in scores in the integrity sub-index.|
|The Chilean index value increased from 63.3 in 2012 to 66.4 in 2013 primarily due to our revisions to the scores for two questions in the adequacy sub-index.|
|The Chilean index value fell from 64.9 in 2011 to 63.3 in 2012 primarily due to a significant reduction in the household savings rate as measured by the Economist Intelligence Unit.|
|The Chilean index value rose from 59.9 in 2010 to 64.9 in 2011 due primarily to a material increase in the sustainability sub-index arising from the new OECD data which showed a much higher coverage than was previously used.|
|The Chilean index value rose slightly from 59.6 in 2009 to 59.9 in 2010.|