FIAP > FIAP Newsletter > Pension Notes – No.9 Chilean experience demonstrates the need to create a Technical Body for updating the Parameters of the Pension System
21 October, 2016
Pension Notes – No.9 Chilean experience demonstrates the need to create a Technical Body for updating the Parameters of the Pension System
Current pensions would be double if the life expectancy and the interest rates used for calculating pensions had been maintained.
The parameters of the pension system have remained unaltered for 35 years, without considering the persistent drop in pension amounts and the low Chilean contribution rate, which is half of the average in OECD countries.
This assay makes it advisable to establish an independent technical body that regularly assesses changes in the variables that affect pension amounts, and proposes the necessary parametric changes to the system.
