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US News: Chile: Why the new President Boric wants to reform the pension system

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The new president elected Gabriel Boric s is committed to reforming the current pension system, today entirely private. A promise that promises to be difficult to hold with a parliament not fully acquired to his cause.

with our correspondent in Santiago of Chile, Naïla Derroisné

The new Chilean President, Gabriel Boric , elected Sunday 19 December, met on Monday the current head of state Sebastián Piñera at a protocol ceremony at the palace of the MONEDA. Gabriel Boric will be invested on March 11th.

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A very unequal system

The 35-year-old president was elected on a socially level reformer program, including its promise to end the current capitalization private pension system, set up during the dictatorship of Pinochet , and defended by the current government of Sebastián Piñera.

This model of pension fund is very criticized by a large part of the Chilean population because it does not guarantee minimum pensions and reproduces social inequalities. Gabriel Boric's voters now hope that things are changing. At age 61, while she could retire, Rosario must continue to work. Because if it stops now, it will only receive 160 euros per month, less than the minimum wage in Chile. "With this money, I could only pay electricity, water and gas. I could not eat, neither heating myself, "she sorry.

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Reforms that are challenging

due to the unsuccessful investments of the money it had placed in a private pension fund, Rosario's retirement lost nearly half of its initial value. "Unfortunately, I will have to work until my death. Unless things change in the country and give us real pensions, "she says.

It considers that the proposal of the new President to eliminate the current pension system is a good thing. Gabriel Boric wants to establish a model more supportive with wage contributions and set up a guaranteed minimum pension by the state. Transformations that will be difficult to achieve since it has no majority in Parliament. Despite this, Karina, a young lawyer, guard hope. "The Convention that is writing the new Constitution is very sensitive to social demands. And within this convention, the reform of pensions is going to be one of the most important demands, "he says.

The Constituent Convention is still six months to drafted the new Constitution which will then be submitted to a new referendum.

► to listen also: Gabriel Boric elected President of Chile: "We enter a period that will be politically very cleaved"

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