"Without Additional Savings, You’re Toast:" Chilean Women’s Retirement Strategies in a Neoliberal Pension System

• In Event: 40820 - Section on Sociology of Sex and Gender Roundtables
  In Refereed Roundtable (60 minute): Table 9: Gender and Economics

Abstract

The Chilean pension system is one of the world’s first fully privatized models. Established in 1981 under Pinochet’s dictatorship, it relies on individual capitalization accounts managed by private pension fund administrators.

Largely unchanged since its inception, the system faces extensive criticism for gender inequities. Since pensions are based on lifetime contributions, national data shows women—who earn less due to wage gaps, part-time work, and caregiving—accumulate smaller savings. Their monthly payouts are also lower due to longer life expectancies and actuarial tables adjusting benefits accordingly. These features reflect masculine policy assumptions favoring male working trajectories.

Using interviews with 32 working women (ages 24-59), this article explores their perceptions of the pension system and retirement strategies. Amid low replacement rates and gender inequities, understanding women’s economic plans for old age is crucial.

Findings show widespread distrust of AFPs, with most believing their pensions will be insufficient. Women identified six retirement strategies: (i) working into old age; (ii) using personal savings; (iii) investing in property; (iv) starting a business later in life; and (v) relying on family support.

Authors

• Cristián Valenzuela-Méndez, Northwestern University

• Rosario Undurraga, Universidad Finis Terrae