posted on Jun, 24 2009 @ 01:34 PM
As chilean i have to say this is not entirely true
"Ninety-five percent of Chilean workers opted for a PRA system"
Today the only choice is the private system.
No other options..
Nobody really "opted".... some people did it 30 years ago
"The accounts have become private property of the citizens."
The money on the accounts are managed by private companies who takes his cut always .
It doesnt matter if they do positive investment with your money or if they lose your money.
Recently i did a calculation that showed that all the people who earns less than u$ 1.000 per month will get an insufficient retirement
And this is a fact....
The only real benefit is the end of the pay-as-you-go system
In chile the system helps if you have a big income, otherwise you're mostly doomed
My biggest criticism to this system are:
- you have an individual account but this is managed by a private company and you dont have the freedom to destinate the funds to other investment...
then you dont really own that money.. you own it the day you retire...only if the company did well (if not, you can easily loose big part of that
- Its a private monopoly... and all companies are similar (no real competition). I wish there was government option too...with less risky investment
in order to give better retirement to the people who earns less than u$ 1000 per month
- Its not an option...you must have a private pension system if you are hired to work in a dependent way (contract)
Sorry the bad spelling but i wanted to clear this things out