Bond ambition – The World Bank’s attempts to launch a longevity bond in Chile


Chile’s decision to create the world’s first fully privatised social security system in 1980 has seen it heralded as a template for other emerging economies. Indeed, in 2001, the then US president George Bush told the visiting Chilean president Ricardo Lagos that he “hoped to receive some suggestions” over how to modernise the US pension system.

Based on a system of individually funded accounts managed by private companies, known as Administradoras de Fondos de Pensiones, the Chilean pension sys