Capital Funded Models of Pension Insurance on Selected Examples Part 1

Abstract

This study on the capital funded models of pension insurance will present the economic concept [in theory] and the Chilean and Argentinian concepts of pension insurance implemented in those countries. On the one hand, extremely similar to each other, and on the other differing with so many detailed solutions that it might as well be said they are completely dissimilar. If we chronologically consider the Chilean system as the primary one, than the Argentinian system is its mirror image, however, reflected in the funhouse mirror.

 Both solutions have aroused and continue to arouse many emotions. They have become the basis for formulating very general, almost axiological conclusions, as well as detailed legal, economic, sociological and other analyses. These are model examples of the so-called capital funded models in pension insurance, which were in their heyday not so long ago, and at present raise more and more skepticism.

However, they cannot be omitted when looking into the future functioning of the public pension systems, particularly due to the fact that they are constantly changing in pursuit of the target model, which will perhaps become the future universal model of the retirement security for the citizens of the globalized world.