Chile’s Pension Reform Makes a Case for Political Compromise
The reform raises mandatory contributions and improves women’s benefits, while carrying a high fiscal cost.
SANTIAGO — Last week, Chile’s Congress broke a decade-long impasse and approved a pension reform, a flashpoint in Chilean politics. The green light represents a legislative victory for President Gabriel Boric in the last full year of his administration. However, while Boric can claim that his government will leave a meaningful legacy, he’s giving up a central point in his reform agenda: the elimination of the Pension Fund Administrators (AFPs). The approved reform differs significantly from the government's initial proposal submitted in November 2022, which sought to repeal the...
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