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FIAP > Boletín – Otras Publicaciones > Pension system in Chile: Challenges and options for advancing gender equity – Friedrich-Ebert-Stiftung (FES) – May 2019

Pension system in Chile: Challenges and options for advancing gender equity – Friedrich-Ebert-Stiftung (FES) – May 2019

17 July, 2019

According to this report, the 2008 reform of the pension system in Chile was a milestone in terms of gender equity, but there are still significant gaps, and the new challenges are even greater.  If things do not change, the expected increase in the demand for long-term care in coming decades will disproportionately affect women and their pensions, since they are the ones who mostly perform this unpaid work. Urgent measures are required to address pending challenges with a comprehensive approach.

This document compiles lots of evidence and examines the gender gaps within the pension system, as well as their main causes. Gradually progressing in their reduction requires a combination of strategies applied to the different factors that cause them. Increasing the retirement age is necessary, but insufficient.

Some key conclusions of the report are:

  1. The reform currently being discussed in Congress is a good opportunity for moving towards an agreement that updates the social pension contract, including measures that effectively guarantee greater gender equity. The contribution to the middle class considered in the bill of law, and differentiated by gender, is certainly an insufficient measure from this perspective, in terms of coverage and amounts, since it aims at encouraging savings rather than introducing gender equity.

 

  1. The subsidy and dependency insurance are a step in the right direction, but they would profit from being analyzed and discussed in a broader context, rather than in the framework of a pension reform. The initiative could be approached as a social security bill that aims at the future establishment of a comprehensive care system, in a consistent and coordinated process.

 

  1. Gender equity challenges in pensions are important and must be addressed gradually, although with a sense of urgency. The discussions scheduled for 2019 could be an opportunity for significant progress in this matter, followed by progressively increasing efforts towards effective gender equity.

 

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