Chileans to get state pensions | News | Al Jazeera

Chileans to get state pensions

President ends Augusto Pinochet's private pensions policy and includes poor Chileans.

    The plan ends the private pension policies
    of Augusto Pinochet [AFP]
    The system required salaried workers to deposit at least 10 per cent of their wages into personal accounts managed by private pension funds.
     
    That created a huge pool of capital that spurred investment and helped produce Chile's perceived economic successes.
     
    Many countries introduced similar systems.
     
    But the private system left out about a third of Chile's workforce, including most of the 1.2 million people who work in its informal economy.
     
    The new state programme is aimed at the self-employed, housewives, street vendors and farmers.
     
    Monthly pensions will start at about $125 and will rise next year to $158, boosting pensioners above the urban poverty level of $95.

    SOURCE: Agencies


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