In July, a government-appointed commission investigating pensions reform recommended allowing domestic banks to enter the sector, to increase competition and reduce the commission that pensions providers charge the public for running a private pension.
Currently, it is compulsory for those in salaried employment to contribute 10% of their earnings to one of six private pension funds. Providers charge a commission of 25% on the contributions.
In total, Chile has the equivalent of $80 billion of private pensions under management (compared with just $30 billion in its much more populous neighbour, Argentina).
Thanks for your interest in Euromoney!
To unlock this article:
