Reform of pension systems has become a serious policy issue in many countries, including New Zealand. The Chilean scheme provided a model for similar reforms of state pensions in countries such as Argentina, Mexico, Bolivia, Colombia and Peru.

The new Chilean scheme has many advantages over its pay-as-you-go (PAYG) predecessor. It is designed to be fully funded by compulsory contributions. For those covered by the scheme, it provides a mechanism for private saving for retirement, backed by a government guarantee.