The Characterization of Population Preferences and Assessments of Retirement Systems: Evidence from Chile

Abstract

This paper studies population preferences and assessments of retirement systems in Chile. I use a unique survey that allowed me to construct individuals’ evaluations of different pillars within retirement systems (e.g., individual, solidary, and state-funded pillars), and their evaluations of current system performance and private pension fund administrators using attitudinal responses. The results imply that social well-being is an important consideration among high-income, highly educated individuals. College-educated individuals were significantly (6.8%) more likely to agree with a solidary pillar funded by contributors, while 1% increases in income significantly increased the likelihood of preferring a system with a solidary component (by 0.5%). This group was also more demanding with regard to the performance of the system and pension fund administrators. The findings also demonstrate that gender is a crucial determinant: men were consistently more likely than women to agree with the three-pillar model and social investments. This result suggests that women should be a specific target in communication campaigns when reforms are being designed and implemented.