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PII News Release
U.S. Should Study Other Nations’ Privatized
Retirement Plans
Mt. Pleasant, IA –
Would a privatized Social Security System succeed in the United States? All one
has to do is look at other nations which have privatized their systems to get a
resounding yes to that question.
In a January
INSTITUTE BRIEF, Public Interest Institute Research Analyst Amy Frantz examines
the privatization of the pension system in the nation of Chile. Fratz’s
BRIEF discusses the success of the private pension system in Chile which was
implemented in 1981. The system in that nation is similar to proposed plans in
the United States.
The INSTITUTE BRIEF
discusses how workers who were in the system prior to its implementation in 1981
were given the option of remaining in the old government system or joining the
new private system. Ninety percent of Chile’s workers joined the private
system by 1983. The success of the Chile system shows that workers would like
to have personal control of their retirement fund, rather that have it
controlled by an outdated government system.
Frantz also examines
five other nations, Great Britain, Mexico, Hungary, Kazakhstan, and China, which
have also adopted personal retirement account systems for their workers.
In conclusion,
Frantz urges the continued study of the private retirement systems of other
countries to determine a better reform to the U.S. Social Security system,
rather than tax increases or band-aid schemes to temporarily extend the life of
the current government run retirement plan.
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