This video did not age well(particularly bit about China), considering how Chileans are less than thrilled about it, partially due to the fact that it profitability is now only half of what was promised. Whole thing is essentially a typical pyramid scam, requiring constant influx of money to operate(like government surplus). Once excess of money starts to dry up, so do pensions. This is why government was constantly "reforming" it, by drawing more and more contributors into it, like forcing employers to contribute to it a few years back. It only works when things are good. And when things are bad, you are fucked, no matter how much you contributed over your lifetime. _...that we should tell every worker that they are free to stay in government-run system or to move to a new system. On a free basis. In a way, Ben, we had a social referendum._ Funny how he forgot to mention that people were softly forced into new system by cutting benefits in exiting government-run system. It was hardly a choice.
@@Galt4570 No, but please don't listen to the OC, he completely misunderstand our system. The system doesn't work at all and has never worked, the rentability is not "only half..." the rentability is non-existent since NOBODY who saves on an AFP (private individual pension funds) receives more or even the same amount of money they put in while the previous system IPS (state collective pension fund) consistently outperforms AFP and gives decent pensions. So what happens with the money? the private pension funds use our money to invest and when they generate profits they pay themselves bonuses and when they lose money we lose our pensions, socialize the loses privatize the profits. Now you must be asking how can we be this stupid and continue to sign up for AFP instead of the IPS, well it's illegal to not be affiliated to an AFP and the IPS is only available to people who were in the INP (previous state pension fund that was shutdown during the dictatorship in the 80s). Meanwhile police and armed forces have their own state collective pension fund that works exactly like the IPS does and their pensions are whatever their last salary was adjusted by inflation plus a bonus for years of the service. There is nothing illegal happening since after the capitalist coup in 1973 the constitution was re-written to legalize corporate theft.
