Gonzalo Lira posts an interesting article on how Chile's pension system benefits everyone:
- By funneling pension contributions into the stock market it increases the amount of risk capital available to companies generally.
- It keeps employers' hands off their workers' pensions: there's no company-wide fund to raid.
- Similarly, there's no national fund for the state to pillage either.
- It increases labour mobility because people can take their pensions with them when they change jobs.
- Finally, it protects firms from crippling themselves by their own stupidity because they never have to make pension promises that they can't keep.
