(Nov. 30 ,2005) As Chile celebrates the 25th anniversary of its private pension funds, the first generation of workers prepares to cash in on the promise of a retirement free of the haunting specter of poverty. Sadly, many Chileans are finding that this promise was just more empty rhetoric from a corrupt and discredited regime.
The plan to privatize Chilean pensions was drafted by Jose Piñera, brother of Chile’s current billionaire presidential candidate. The government sold the idea as an attempt to give the worker more individual liberty and control over their own future.
Under the new plan, Chileans would invest their savings in private pension plans managed by large financial institutes with limited government oversight. Security was replaced by opportunity and while not guaranteeing any returns, the plans promised a compounded interest rate on individual investments and the possibility of substantial growth of personal savings sufficient to retire comfortably.
According to Mercedes…
The plan to privatize Chilean pensions was drafted by Jose Piñera, brother of Chile’s current billionaire presidential candidate. The government sold the idea as an attempt to give the worker more individual liberty and control over their own future.
Under the new plan, Chileans would invest their savings in private pension plans managed by large financial institutes with limited government oversight. Security was replaced by opportunity and while not guaranteeing any returns, the plans promised a compounded interest rate on individual investments and the possibility of substantial growth of personal savings sufficient to retire comfortably.
According to Mercedes…