Pension in Chile

The privatization of the pension system, with the subsequent creation of the Pension Fund Administrators (AFP), is one of the most innovative reforms in the economic history of Chile and the world. People can choose between five administrators to manage their savings. By law, AFP collects 10% of gross wages paid, money that goes to individual investment accounts and are divided between fixed and variable income funds. The money is invested
in various economic sectors, including infrastructure and telecommunications.