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
Date Written: February 12, 2011
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: Suggested Citation