THE "TWO-TIER SYSTEM'' THAT MANY EXPERTS ON SOCIAL Security recommend for the U.S. was pioneered in Chile. Having passed through years of military dictatorship before becoming a democracy, that country isn't normally regarded as a showcase of social policy. Yet its 14-year-old retirement system is being adopted by a number of other nations, including Argentina, Australia and Sweden, that have graying populations and overburdened pension plans. The enforced savings and investment features of the new system are already credited with one remarkable outcome: the net worth of the average Chilean--$21,000--is almost four times the worker's average annual salary. By comparison, the...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!