Business and Economics Journal

Chilean Reform on Italian Pension System

Abstract

Phillip A Mixon

This paper examines the Italian public pension system reforms and the possibility of switching to a private capitalization system. Currently several countries are experiencing a high level of public debt, and the political debate is gravitating around the reduction of budget deficits and the improvement of public debt as a percentage of GDP ratio. An important part of public expenditure is represented by pension benefits; its amount is constantly increasing due to the architecture of public pension system, which cannot face the change happened in the demographic composition nowadays. I try to use the Chilean experience as a model for the Italian pension system. In the Conclusion, several policies are laid out to help facilitate this transition.