Abstract

The paper evaluates the Chilean pension reform of the early 1980s by contrasting
preliminary results after 15 years of operation against the promises embedded in
the proposals originally made. Special attention is given to following topics: transparency,
efficiency, coverage, benefits delivered, demographic issues, saving effects and the role of
the State. The text concludes by stating that promises made have not necessarily been accomplished
and that Latin American countries should think carefully whether the switch to
Chilean-like fully-funded old-age pension schemes is really able to offer an encompassing
solution for the current social security problems.

JEL Classification: N36; H55.