Inicio Economía Chilean pension system is number eight in international ranking

Chilean pension system is number eight in international ranking

 

The Melbourne Mercer Global Pension Index 2018 was published enlisting the pension systems of 34 countries, in which our country occupies the eighth place with 69.3 points.

This classification positions our vilified AFPs as a “category B” system, that is, with some adjustments in need for their improvement.

One of the positive aspects of our system is its sustainability, since its non-distribution nature does not imply a possible collapse in public spending.

Diego Guaita, general manager of Mercer Chile, explained to CNN Chile that “when pension systems are very generous, they entail that the government should look for a way to finance them and for that, they go for taxes or reduction of benefits”.

The matters to improve in our system, under the sight of the experts, are increasing the percentage of mandatory contribution, raising the retirement age and promoting work in the elderly.

The Netherlands, Denmark and Finland are the three countries that top the list.