Chile's New Pension Reforms
Wednesday, March 31, 2010
by Estelle James, Alejandra Cox Edwards and Augusto Iglesias
In 2008 Chile initiated a major reform to its personal account social security system. The personal account system, established in 1981, replaced a traditional pay-as-you-go (PAYGO) system in which workers paid taxes that financed the benefits of those who had already retired - similar to Social Security in the United States.