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A new article examines Chile s defined contribution pension system, suggesting that the impact of the COVID-19 pandemic threatens its viability, undermines its financial foundation, and exposes its vulnerability to political risk. As Chile drafts a new constitution, debates about the efficiency and equity of the pension system continue. And actions taken as a result of the pandemic demonstrate that the pension system failed to live up to its original promise of ending political risk and preventing the diversion of pension funds, the authors argue.
The article, by Silvia Borzutzky, an academic at Carnegie Mellon University (CMU), and Stephen J. Kay, the director of the Atlanta Fed s Americas Center, will appear in International Social Security Review, a journal of the International Social Security Association, later this year.