Next Generation of Individual Account Pension Reforms in Latin America

Social Security Bulletin, Vol. 71, No. 1, pp. 35-76, 2011

42 Pages Posted: 27 Feb 2011 Last revised: 25 Apr 2015

Barbara Kritzer

Social Security Administration, Office of Research Evaluation and Statistics

Stephen J. Kay

Federal Reserve Bank of Atlanta

Tapen Sinha

Instituto Tecnológico Autónomo de México (ITAM) - Division of Actuarial Science, Statistics and Mathematics; Nottingham University Business School

Date Written: February 12, 2011

Abstract

Latin America led the world in introducing individual retirement accounts intended to complement or replace defined benefit state-sponsored, pay-as-you-go systems. After Chile implemented the first system in 1981, a number of other Latin American countries incorporated privately managed individual accounts as part of their retirement income systems beginning in the 1990s. This article examines the subsequent "reform of the reform" of these pension systems, with a focus on the recent overhaul of the Chilean system and major reforms in Mexico, Peru, and Colombia. The authors analyze key elements of pension reform in the region relating to individual accounts: system coverage, fees, competition, investment, the impact of gender on benefits, financial education, voluntary savings, and payouts.

Keywords: pension funds, social security, retirement, market structure, international social insurance

JEL Classification: D4, L5, G23, H55, J26

Suggested Citation

Kritzer, Barbara and Kay, Stephen J. and Sinha, Tapen, Next Generation of Individual Account Pension Reforms in Latin America (February 12, 2011). Social Security Bulletin, Vol. 71, No. 1, pp. 35-76, 2011. Available at SSRN: https://ssrn.com/abstract=1769350

Barbara Kritzer (Contact Author)

Social Security Administration, Office of Research Evaluation and Statistics ( email )

Washington, DC
United States

Stephen J. Kay

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

Tapen Sinha

Instituto Tecnológico Autónomo de México (ITAM) - Division of Actuarial Science, Statistics and Mathematics ( email )

Rio Hondo #1 Col. Tizapan San Angel
C.P. 01000 Del. Alvaro Obregon
52 55 5628 4088 (Phone)
52 55 5628 4086 (Fax)

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

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