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Posted on 09/27/2013 10:02:36 AM PDT by SeekAndFind
Pensions: In Chile, a major study shows the nation's private retirement accounts provide workers pensions worth 87% of their salaries, 73% of that from profits on savings. So much for the canard about the perils of markets.
The story was front-page news in Chile's largest newspapers, El Mercurio and La Tercera, on Sept. 3, a powerful affirmation of what former Republican presidential candidates Newt Gingrich and Herman Cain called "The Chilean Model" of private retirement accounts.
The study of 28,000 households by Dictuc, a consultancy affiliated with the Catholic University of Chile, showed that male workers who contributed just 10% of their salaries to their retirements for 10 years or more on average earned retirement checks worth about 87% of their top salaries. No 401(k) account needed.
That's because in 1981 Chile Labor Minister Jose Pinera replaced the country's bankrupt social security system with this famous system of private accounts.
(Excerpt) Read more at news.investors.com ...
Colombia has a similar system. The “maids” assoc. owns natural gas plants, hospitals, resorts and so on...they are doing VERY WELL!
“Everyone has excuses why something can’t work.”
Nobody complained here when FReepers illustrated how ObamaCare couldn’t work...
bump
As a Dave Ramsey listener, I have heard him run an analysis several times. My numbers might be slightly off, but they are relatively accurate for the principles of the discussion.
If a person is stuck for their entire working career at minimum wage, they will have 13% confiscated for SSIP (and Medicare.) Never mind that they would have to be a terrible worker and overall loser to be at minimum wage for 40 years.....If they were to invest that amount in a Growth Mutual Fund retirement account, they would have accumulated about $3M in a retirement fund. This would net them a monthly income of about $10K a month after retirement.
Yet, people fight like mad to prevent that very scenario, so that they can receive their pitiful $1K a month from their government overlords!
SSIP is a purely evil plan!
That can change quickly. Europe had the same problem, then America was born.
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