The Inspiration Of The Chilean Pension Reform

The human society has entered the era of aging, whether developed ordeveloping countries have different levels of shock. Both of them are thinking aboutcountermeasures to cope with the challenges of the aging society. And the first thingto do is establishing a social Security System adapted to the needs of the aging timesby adjusting, improving and reforming the existing social Security System. TheChilean mode has caused great concern for the reform of the academic communityand decision making model in China’s pension system reform and the whole socialsecurity system reform process. The so-called Chilean model, in fact, Chileimplemented by individual contributions, personal, fully funded pension privatizationmodes of private sector operators. As the world’s influential pension system reforminitiatives, it is indeed a fundamental change in the traditional social security system,the typical and representative is not in doubt. How to evaluate the achievements andshortcomings of the Chilean model? What could Chinese learn from the experience ofChile? Could we have ability to imitate Chile to take the full privatization of thepension insurance road? Indeed, it is an important issue worthy of seriousconsideration. From the introduction of pension systems theory, this paper analyzesthe background of the Chilean pension system reform, the content and features of itssocio-economic, Chile, which summed up a number of successful experiences andlessons of failure. And on this basis, the combination of pension insurance in Chinathe status quo, to come to the Chilean pension system reform the social securitysystem can reduce stress and stimulate local economic development, and therefore hasimportant implications for China’s pension system construction. So we can overcomethe disadvantage of lack of social fairness in the design of various types of socialsecurity reform. The only way to find a more reasonable path of social security reform,the new model to our own conditions can be found from the Chilean experience.In addition to the introduction, the main content of this article can be divided intofive chapters, the specific content is organized as follows:The first chapter introduces the definition of relevant concepts and basic theory,the demarcation of the operational system of the current pension insurance fund system.The second chapter examines the process of reform of the social pension systemin Chile in1981as well as the basic framework of the new system. Before the reformof traditional PAYG system is already facing bankruptcy. New system was able topromote the implementation of a strong military government under the rule of. Afterthe reform of the pension system, the formation of the institutional structure of thethree pillars of pension liabilities under the original system is recognized through theissuance of social security for the Notes. Reform introduced a mandatory pension planfully funded system based on individual capitalization account. And the governmentset up a special pension fund management company is responsible for marketregulation and financial security to manage and invest.The third chapter is the core part of this paper. Efficiency analysis on the basis ofthe comprehensive discussion of Chile’s pension reform. Analysis the Chilean pensioninsurance fund reform in politics both in terms of the more prominent results from thepension insurance fund sustainability of the system after the reform and economicgrowth.Chapter Four based on the second chapter on the reform of Chile’s pensioninsurance fund comprehensive discussion basis mainly expounds lack of reform inChile and in the future reform. The downside is the lower insurance coverage, lack ofsocial Freemasons and excessive management fees. Reform trend is to improve themulti-pillar pension schemes and appropriate to reduce the cost of investmentmanagement.Fifth chapter is the conclusion of this article, the Chilean Pension Fundingcertainly, but also refers to the Office of the lack of a reform trend. With the nationalsituation, the proposed development and improvement of the specific ideas andmethods of the old-age insurance system in China.