Chile (CL)

Chile's pension system has two pillars: (1) Individual AFP accounts: each worker contributes 10% of gross monthly salary (plus AFP commission — lowest is AFP Uno at 0.46%, highest is AFP Provida at 1.45% as of 2026) to their personal AFP account. From August 2025, employers also pay an additional employer contribution that starts at 1% in 2025 and rises by 0.5 percentage points each August, reaching 8.5% by August 2035 (under Law 21,735/Ley 21.719). This employer contribution is allocated among: the worker's individual AFP account, the new Autonomous Pension Protection Fund (FAPP), and a loan-to-FAPP component — the exact split shifts each year as the reform phases in (by August 2026: 0.1% to individual account, 0.9% FAPP loan, 2.5% FAPP direct). The disability/survivorship insurance (SIS) remains a separate employer cost. These funds are invested and grow over your career. At retirement, you use your accumulated balance to fund your pension — either as a programmed withdrawal (retiro programado) from the AFP or as a purchased annuity (renta vitalicia) from a life insurance company. (2) Solidarity/guaranteed pillar: the Pensión Garantizada Universal (PGU) is CLP $231,732/month from 1 February 2026 for those aged 65–74 in the lowest 80% of household income; CLP $250,275/month for those aged 75+ (expanded to ages 75+ from September 2026). New from January 2026: the BAC (benefit for years of contributions) and CEV (life-expectancy compensation for women) are paid automatically with retirement pensions to all qualifying retirees. AFP fund options: Fund A (highest risk/return, equities-heavy, for under-40s), Fund B (moderate-high), Fund C (moderate, default), Fund D (moderate-low), Fund E (most conservative, bonds-heavy, for near-retirees).

Legal retirement age: men 65, women 60. Early retirement (retiro anticipado) is possible if your AFP balance exceeds the threshold to fund a pension of at least 70% of your average last 10 years' salary AND exceeds 80% of the maximum APS — complex rules, consult your AFP asesor previsional. Continuing to work past retirement age does not affect your right to begin pension withdrawals — you can draw a pension while still employed, though AFP contributions on continuing employment reduce slightly.

There is no minimum number of years of AFP contributions required to access your individual savings at retirement — the balance is yours regardless of contribution history. However, to qualify for the solidarity PBS/APS supplements, you must: be aged 65+, be in the lowest 80% of household income, and have resided in Chile continuously for at least 20 years after age 20 (with at least 4 of the last 5 years before application in Chile). For expats who spent only part of their career in Chile, this 20-year residency requirement is the key barrier to PBS/APS access — totalization agreements with some countries may provide bridging.

Use the Superintendencia de Pensiones online pension estimator at spensiones.cl — log in with ClaveÚnica to see your AFP balance, contribution history, and projected pension under different scenarios. The SCOMP (Sistema de Consulta y Oferta de Montos de Pensión) at scomp.cl compares annuity offers from all insurance companies and programmed withdrawal projections from all AFPs — mandatory consultation before final pension election. AFP statements (estado de cuenta): quarterly statements emailed by your AFP show current balance, fund allocation, and recent returns. Request an informe de saldos y movimientos at any time from your AFP's website or app.

No specific waiting period — you can apply to withdraw upon demonstrating permanent departure from Chile. You must provide evidence of leaving (passport stamps, new country of residence documentation, or a declaration before a notary).

Your individual AFP account balance at the time of withdrawal — the full accumulated amount including investment returns, minus any outstanding AFP commission fees. The employer reform-contribution portion (2024 Ley 21.719): withdrawal rules for this portion are being determined under the reform implementation — check with your AFP. APV (voluntary pension savings) accounts: can be withdrawn with a 15% penalty withholding tax (impuesto a los retiros de APV Régimen A), or if you chose Régimen B APV (post-tax contributions), withdrawal is penalty-free of income tax but subject to a 15% flat withholding.