Private Accounts; A First Hand Look

LA Times

Weary from decades of working nights and weekends at a public hospital, nursing assistant Inelia Pardo Acevedo recently retired.

But the 64-year-old plans to look for a part-time job to pad the nest egg in her personal retirement account. The $225 a month she draws under Chile's privatized system doesn't stretch far. And what galls her is that colleagues who stuck with traditional pension plans get three times as much, guaranteed for the rest of their lives.

The government "painted this wonderful picture of private accounts," Pardo said. "They fooled me. They fooled us all."


Nearly two dozen nations, including Britain, Argentina, Sweden and Singapore, have since adopted some version of Chile's plan. President Bush has lauded it as "a great example" of why Americans should be allowed to divert a portion of their Social Security contributions to personal accounts.


While privatization may have been good for Chile's economy, workers like Quintanilla say it hasn't done much for them.

"I'll probably have to work the rest of my life now," she said. "I'm angry."

You should also note that Britain is working to move back to the pay as you go system that the U.S. currently has.

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