Chile is the only country in Latin America can is a 1st world nation (Brazil is close). Chile was the FIRST country to create a social security system, therefore, they were the first to see it go bankrupt. Back in 1981 they had a genius idea and it not only saved their system, but actually created 10x more money for retirees at retirement. IT'S THE BEST SYSTEM IN THE WORLD!!! So much so countries around the world have been lining up to copy it!!!
My man Herman Cain is one of those people that KNOWS America must do this also! Liberals are slandering him for his, but they have NO IDEA what it is!
Attached is a PDF on the Chilean Social Security System - the best in the world! See the Liberal tribunes assessment of it! Cain knocks another one out of the park, along with his 9-9-9 plan.
http://www.ssa.gov/policy/docs/ssb/v59n3/v59n3p45.pdf
My man Herman Cain is one of those people that KNOWS America must do this also! Liberals are slandering him for his, but they have NO IDEA what it is!
Attached is a PDF on the Chilean Social Security System - the best in the world! See the Liberal tribunes assessment of it! Cain knocks another one out of the park, along with his 9-9-9 plan.
http://www.ssa.gov/policy/docs/ssb/v59n3/v59n3p45.pdf
Countries Line Up To Copy Chile's Pension System - Chicago Tribune
Since 1980, Chile has run the world's most-successful private pension system. And now just about everyone wants to copy it.
Visitors from Russia, China, Thailand and Spain file through the pension fund chief's office in ever-growing throngs these days, picking up stacks of literature in English and Spanish. His staff publishes a pension system newsletter that now has 500 subscribers in the United States alone. Peru, Ecuador and a host of other nations are already converts.
"Chile's better known for its pension funds these days than its wines," he says, smiling.
Why Chile's model is so popular isn't hard to understand. In the late 1970s, this country of 14 million faced the same kind of problem now bedeviling the United States and other countries: a social security system rapidly approaching insolvency.
Chile's then-military government reacted with a novel approach recommended by its University of Chicago-trained economic advisers: It privatized the system.
Workers, instead of paying a social security tax to the government, began paying 10 percent of their salary into an individual retirement account, managed by one of a handful of government-approved private investment firms.
Older workers, who had not had the opportunity to build up adequate private accounts, continued to get checks from the government. But in time, those transition payments will be phased out.
The program has been an enormous success. Chile's private savings rate has ballooned to 30 percent, on par with Asian countries, as workers have socked away more than $27 billion. Most workers can now expect to retire after 35 years at 85 percent of their salary--and that's if they receive only fairly low returns of 4 percent annually in real terms. Actual real returns have topped 12 percent, Bustamante said.
Those kind of numbers have attracted the attention of the United States, which is facing the rapidly looming breakdown of its own Social Security system.
By around 2012, Social Security, now stuck with only 1.5 workers per retiree, down from 8 per retiree decades ago, will begin to pay out more money than it takes in, according to the Washington-based Cato Institute, a libertarian research group.
At that point, the country will face some "rather ugly choices," as Ted Carpenter, Cato's vice president, puts it. Those will be to either drastically cut benefits or dramatically raise Social Security taxes on workers.
Particularly hard-hit will be workers now in their mid-40s and younger, who without any change to the current system may spend a lifetime paying into it without getting much in the way of benefits back, Carpenter said.
If it allowed workers to begin paying into their own private retirement funds, the United States, like Chile, would have to find some way to continue paying out Social Security benefits to current recipients for a few decades without any money coming into the system.
That could be especially difficult for a country like the United States with a large budget deficit and a Social Security "fund" filled with IOUs rather than cash, said Andras Uthoff, a Santiago-based monetary expert with the United Nations.
But if the money can be found, the switch offers a host of long-term benefits beyond simply avoiding an eventual collapse of the current system, Uthoff said.
First, the changeover would make the whole process of retirement saving clearer in the United States, by allowing workers to keep and invest their own money rather than pay it into a system that promises them they will one day get it back.
Right now, the U.S. retirement system functions "in a black box," Uthoff said. "Money comes in, money goes out and it's not clear what goes on in the middle." The new model removes the government from the equation, ensuring it cannot borrow retirement funds to mask government debt.
Under the Chilean system, workers get statements every few months showing exactly how much money they have saved and can expect to receive at retirement, a "more transparent process," Uthoff said. They also choose how and where to invest their money--within a limited range of low-risk investments--rather than trusting the government to make the best decision on their behalf...