Sergio Urzua, professor in the Department of Economics at the University of Maryland: “Chile’s pension reform is long overdue. The nation’s contribution rate to its individual accounts scheme (10 percent) is below OECD standards, and labor market rigidities have kept informality rates above 25 percent for years. At the same time, the old-age dependency ratio continues to rise, tallying to the fiscal pressure of the distributive pillar. In 2021, efforts under President Sebastian Piñera’s administration strengthened the system’s solidarity pillar. Still, they will not counterweight the long-lasting harmful impact of three pension withdrawals, which vaporized $50 billion of assets in retirement savings and stressed the country’s capital market and financial system. This complex scenario sets the scene for President Gabriel Boric’s intention to present a comprehensive pension reform. Although details remain largely unknown, based on his presidential…”