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Essay heading: US & Chile's Spcial Security System
 
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Issue: Social Issues
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Date added: May 7, 2000
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No of pages / words: 8 / 2057
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The individual accounts that were created under this system incentivize savings, thus fueling spending and the markets, and they encourage higher productivity. These factors create an environment that fosters overall economic growth (Chile's Pension Reform 2). Successes of Chilean Pension Fund Privatization One of the main successes of the privatization of the Chilean pension system was that it left individuals with the mental perception that their pension would be available to them when they retired...
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This is a directly a result of the fact that the new system gives a return to individuals based on what they contribute. This also gives motive to individuals to put more money into their pensions so that they can retire early, or so they receive higher annuities when they do retire. The new system that Chile has implemented gives the individual some control over how his or her pension money will be invested...
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