Chilean pension system's legitimacy crisis: insights into public perception and satisfaction levels

Abstract

his study explores the knowledge and perceptions of Chilean citizens regarding the pension system administered by the AFP (Administradoras de Fondos de Pensiones), which has faced widespread criticism for failing to address economic and gender inequalities. Despite reforms, persistent public dissatisfaction stems from low pension returns and high administrative fees. The research employs a quantitative observational methodology, systematically analyzing secondary data from the Social Protection Survey (EPS), a comprehensive and nationally representative longitudinal panel study conducted in Chile, with approximately 16,000 respondents. The survey collects detailed information on labor history, social protection, and financial knowledge. Descriptive statistical analysis was performed to identify significant patterns and emerging trends. Findings reveal significant dissatisfaction among affiliates, driven by inadequate pension amounts and a lack of trust in fund administrators. The study underscores the need for greater public confidence and enhanced equity within the system These insights are essential for guiding future public policy reforms, emphasizing the importance of understanding the factors shaping affiliates' perceptions. Addressing these issues is crucial for fostering a more equitable and socially legitimate pension system in Chile. The study contributes to the broader discourse on sustainable economic development by highlighting the need for structural reforms that align with public expectations.