The eighth edition of “Doble Click Económico,” a bulletin promoted by ICARE’s Economics and Finance Circle in collaboration with the Universidad Adolfo Ibáñez School of Business, explores key changes introduced by Chile’s Pension Reform. The reform replaces multifunds (A, B, C, D, and E) with up to 10 Generational Funds (FG), introduces reference portfolios for these funds, and implements a new reward and penalty system for pension fund administrators (AFP).
Pablo Castañeda, PhD in Economics from Boston University and associate professor at Universidad Adolfo Ibáñez, analyzes how the FG system aims to reduce the financial knowledge required for affiliates to make sound investment decisions. “The current multifund system assumes a level of financial literacy that doesn’t exist in many countries with pension systems similar to Chile’s,” he notes.
For more details, readers are invited to download the bulletin via the provided link.
— new from Instituto Chileno de Administración Racional de Empresas