Save for the retirement It is one of the most common concerns among Chileans who are already in the world of work. Uncertainty about the amount of pension they will receive once they retire motivates many people to plan ahead. The ability to maintain a decent quality of life in retirement depends largely on how much money you have saved over your years of active work.
In Chile, the pensions Self-financed, that is, those that depend on individual savings, are usually low compared to the expectations of many people. According to a recent study by the Superintendence of Pensions and the Budget Directorate (Dipres), the median self-financed pension is only $73,705 per month. However, by including the Universal Guaranteed Pension (PGU), this amount increases to $278,535, which is still insufficient for many people.
Men, on average, achieve pension self-financed of $159,333, which increases to $354,046 with the PGU. In the case of women, the difference is more marked, with a self-financed pension of $38,158, which reaches $244,211 with the PGU supplement. This gap reflects not only wage inequalities between genders, but also the impact of pension gaps, caused mainly by job interruptions that affect many women.
For those who aspire to receive a higher pension, such as one million pesos a month, the figures of saving required are considerably higher. An analysis carried out by Ciedess, simulating that no changes are applied to the current pension system, estimates that a man would need to accumulate a balance of $217,007,103 at the time of retirement, at age 65. This is under the assumption that you start working at age 25 with an initial taxable salary of $2,490,378 and that this increases 2% annually until age 40.
For women, the saving The need is even greater, due to the gender gap in wages and longer life expectancy. According to the same study, a woman who wants to achieve a monthly pension of $1 million must save a total of $240,557,553 at age 60. This is assuming that you started working at age 25 with a taxable salary of $4,736,087 and with a 2% annual increase until age 40.
