Chile's President Unveils Pension Reform Plan
Chile's President Unveils Pension Reform Plan
SANTIAGO DE CHILE, June 20 (BERNAMA-NNN-Agencies) -- Chile's President Sebastian Pinera unveiled a pension reform plan to encourage savings and postpone the retirement age for those who want to keep working.
In an interview broadcast by Radio Cooperativa, Pinera said " one of the things we are going to do is to propose social security reform, because we are perfectly aware that there are millions of Chileans who are anguished to find out that when their time comes to retire, their pensions will not allow them to maintain a decent standard of living."
According to Pinera, the reform is two-pronged: the first aims to promote competition among social security providers so commissions will decrease and pensions will increase, and the second, "to improve the return on investments, many of which are restricted."
The reform also includes the creation of mechanisms to increase social security budgets and inspire people to contribute to social security during their employment years, and "mechanisms for people to extend their employment years," by offering them "more incentives to work longer," said Pinera.
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