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The Performance of the Funded Pension Systems in Latin America
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Juan Yermo,
The World Bank,
1/1/2002
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This paper analyses the performance of private pension systems with respect to two key indicators: replacement rates and the return to pension contributions. While returns have been high since the inception of the systems, some deficiencies in the risk management design of the system may put performance into jeopardy in the near future. Further, the expected cost-cutting nature of competition has not materialised and most countries have simply opted to take away the little freedom that individuals had to make choices. Only Chile has begun to diverge from this trend, liberalizing foreign investment and introducing some choice over investment during the accumulation stage. Reforms are still needed during the retirement stage, in order to permit more flexibility in the timing and form of annuity purchases.
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Link to Paper (PDF)
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Pages: 73
Price: Free
Ordering Information:
The World Bank
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