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The Chilean Pension System

By Joaquin Vial Ruiz-Tagle and Francisca Castro


The introduction in the early 1980s of a privately managed pension system in Chile, based on individual capital accounts, has attracted world-wide attention. This reform – as well as other market oriented structural changes – and the significant improvement in Chilean economic performance has led many observers to conclude a direct link, especially through the rise in private domestic savings generated through the new pension system.

DOI identifier: 10.1787/budget-v1-art7-en
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