Friday, January 07, 2005

Private Pensions in Chile, a Quarter Century On

Since everyone wants to champion Chile's social security system as ideal I looked around for some information on it. Here is an article that looks at the good and the bad details of their system:


Read on

Not surprisingly the people that invest wisely do better and those that don't are worse off. To speak in metaphor, this is a safety net with a lot of holes in it for people to fall through.

I favor increasing the age limit on Social Security and raising the pay-in ceiling upwards a little bit. Taken together the system becomes solvent for the foreseeable future without any voodoo-economic borrowing schemes.

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Foot Quotes

"Ignorance more frequently begets confidence than does knowledge"

Charles Darwin