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Hamilton College

Publication Date

Fall 2017

Program Name

Chile: Cultural Identity, Social Justice, and Community Development


This investigation will analyze the consequences of the proposal set forth by the leaders of the social movement “No + AFP” to structurally change the Chilean pension system. First, it will explore the historical context that led to the current system and has caused startlingly low pensions for almost 40 years. Then, it will explain the fundamental adjustments that the organization “No + AFP” suggests with regards to obligatory contributions, administration and distribution of social security. Finally, it will analyze the impact that the proposed changes will have on the Chilean economy, specifically with respect to the development of the pensions themselves, the labor market and the financial system.

It will conclude that, while there are strong elements of the proposal that ought to be considered, the model that “No + AFP” proposes is unviable in the long run due to demographic shifts in the Chilean population, as well as its potential impact on the financial system. A transition in the pension system must include the long-­term growth and support of the financial system of the current system, as well as the greater contributions and guaranteed minimums that have been proposed by the group “No + AFP.”


Economics | Income Distribution | Latin American Studies | Organization Development | Politics and Social Change | Work, Economy and Organizations


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