• There are benefits from Latin American pension reform, but they have been overestimated.
• The approaches taken in second-generation reforms and their still early results hold lessons for OECD and non-OECD countries alike.
• A partial shift to funding is feasible and can be financed in different ways; partial funding of pensions can lead to greater risk diversification.
• High administrative costs and uniformity of investment portfolios make the new systems inefficient; pension regulation has to be designed and implemented to lessen these negative effects.
Pension Reform
Lessons from Latin America
