The Chilean Pension Reform Turns 25: Lessons from the Social Protection Survey

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PARC Working Paper Series
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Chile
Retirement system
PAYGO
Defined contribution individual accounts
Social Protection Survey
Demography, Population, and Ecology
Family, Life Course, and Society
Social and Behavioral Sciences
Sociology
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de Mesa, Alberto Arenas
Bravo, David
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In 1980, Chile dramatically reformed its retirement system, replacing what was an old insolvent PAYGO program with a new structure that relies heavily on funded defined contribution individual accounts. In addition, eligibility and benefit requirements were standardized, and a safety net for old-age poverty was strengthened. Twenty-five years after this reform, the Chilean model is being re-assessed, in terms of coverage, contribution, investment, and retirement benefit outcomes. This paper introduces a recently-developed longitudinal survey of individual respondents in Chile, the Social Protection Survey (or Encuesta de PrevisiĆ³n Social, EPS), and illustrates some uses of this survey for microeconomic analysis of key aspects of the Chilean system.

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2006-07-01
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Arenas de Mesa, Alberto, David Bravo, Jere R. Behrman, Olivia S. Mitchell, and Petra Todd with assistance from Andres Otero, Jeremy Skog, Javiera Vasquez and Viviana Velez-Grajales. 2006. "The Chilean Pension Reform Turns 25: Lessons from the Social Protection Survey." PARC Working Paper Series, WPS 06-03.
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