A Chilean salaried worker on average pay would need to save about 9% more of their salary to reach a pension equal to 70% of their earnings, and a self-employed worker about 14%. Those are the OECD's estimates of Chile's pension gap in its annual Pensions Outlook 2026, presented on Wednesday, November 4, 2026 in Paris, according to Diario Financiero. For women the gap is larger, although the paper does not give the figure.
The report comes as Chile is in the middle of implementing its pension reform: since August 2026 payrolls, employers pay a contribution of 3.5% of taxable salary, which will rise gradually to 8.5% in 2033, according to the Superintendency of Pensions. The OECD warns that those increases make hiring more expensive, although it values their gradual phase-in.
View the data as a table
| Male salaried worker, average pay | ~9% |
| Self-employed worker | ~14% |
| Countries with at least one group with a gap | 40 of 41 |
| Employer contribution in 2033 | 8.5% |
What the pension gap calculated by the OECD is
The OECD measures how much of a salary would have to go to voluntary savings over a whole working life for the mandatory pension, plus those savings, to reach a target replacement rate. It uses different targets by income: 80% of salary for low earners, 70% for average earners and 60% for high earners. If the mandatory system already reaches that target, the gap is zero.
The figures are a floor: the calculation assumes full careers starting at age 22, with no gaps. Periods without contributions, unemployment and informality would raise the savings needed. In 40 of the 41 countries analyzed at least one group needs voluntary savings, and among groups with a gap the average is 9.7% of salary for male employees, 10.8% for women and 13.1% for the self-employed.
*Average among groups with a gap in the 41 countries in the study. Chile's figures are approximate ("about"), as reported by the paper.
How much 9% of your salary is in pesos
To size the gap, we calculated how much that additional saving represents per month for different gross salaries. It is an illustrative exercise using the OECD percentages, not a recommendation on how much to save: the real need depends on age, accumulated balance, gaps and the pension each person expects. In Chile, the most common voluntary savings vehicle is the APV, which has tax benefits; we explain it in what the APV is and how to choose between regime A or B.
| Gross monthly salary | 9% (employee) | 14% (self-employed) |
|---|---|---|
| CLP 600,000 | CLP 54,000 | CLP 84,000 |
| CLP 800,000 | CLP 72,000 | CLP 112,000 |
| CLP 1,000,000 | CLP 90,000 | CLP 140,000 |
| CLP 1,500,000 | CLP 135,000 | CLP 210,000 |
| CLP 2,000,000 | CLP 180,000 | CLP 280,000 |
| CLP 3,000,000 | CLP 270,000 | CLP 420,000 |
Pauta Financiera calculation using the OECD percentages. It does not account for the taxable ceiling or the tax benefits of voluntary savings.
Does your AFP, fund manager or insurer offer voluntary pension savings? Reach Pauta Financiera's readers.
See advertising optionsThe OECD's warning on employer contributions
The report notes that employer-paid contributions raise labor costs and can reduce demand for workers, and cites studies using data from Chile, Colombia and Peru showing that these contributions influence the decision to take a formal or informal job. At the same time, it highlights that Chile, like Mexico, is introducing them gradually so employers can adjust.
In Chile, the new contribution started in August 2025 at 1% of taxable pay (0.1% to the individual account and 0.9% to the new Social Insurance fund), according to Social Security and the Superintendency. Since August 2026 employers pay 3.5%, a figure that already includes the disability and survivorship insurance (SIS) rate, and at the end of the transition, in 2033, it will reach 8.5%: 4.5% to the individual account, 1.5% to the protected-return contribution and 2.5% to the Social Pension Insurance, which includes the SIS.
| Period | Employer contribution | Where it goes |
|---|---|---|
| From August 2025 | 1% | 0.1% individual account and 0.9% Social Insurance (SIS paid separately) |
| From August 2026 | 3.5% | Includes the SIS rate |
| From August 2033 | 8.5% | 4.5% individual account, 1.5% protected return and 2.5% Social Insurance incl. SIS |
Source: Superintendency of Pensions and Undersecretariat of Social Security. The rates for the intermediate years rise in annual steps every August; the figures in the table are those the Superintendency details on its website. On top of that is the 10% of salary each worker already contributes to their AFP account.
View the data as a table
| Individual account | Protected return | Social Insurance (incl. SIS) | |
|---|---|---|---|
| August 2033 | 4.5% | 1.5% | 2.5% |
- August 2025Employer contribution begins: 1%
- November 2025OECD projects a 61% replacement rate after the reformPensions at a Glance 2025.
- August 2026Contribution rises to 3.5%, SIS included
- November 4, 2026Pensions Outlook 2026: ~9% gap in Chile
- August 2033Contribution reaches 8.5%
How the pension gap is reduced in practice
The OECD points to voluntary savings, but in Chile there are other levers that depend on each member: contributing without gaps and checking which fund the mandatory savings are in and how much the AFP charges. Each fund's returns and current fees are in our article on which AFP and fund have performed best in 2026. For those close to retirement, the state tops up low pensions with the Universal Guaranteed Pension, which we explain in PGU 2026: amount and requirements.
- Self-employed workers: they have the largest gap (~14%) because they contribute on a smaller base and with more interruptions.
- Women: the OECD estimates a larger gap than for men, due to shorter careers and longer life expectancy.
- Employees on average pay: about CLP 90,000 a month for every million pesos of gross salary, using the illustrative 9% calculation.
Frequently asked questions
What did the OECD say about pensions in Chile?
That a salaried worker on average pay would need to save about 9% more of their salary to reach a 70% pension, and a self-employed worker about 14%. It also warned that employer contributions make hiring more expensive.
What is the replacement rate?
It is the pension as a percentage of the last salary. A 70% replacement rate means someone who earned CLP 1,000,000 receives a pension of CLP 700,000.
How much do employers pay today under the pension reform?
Since August 2026 payrolls, 3.5% of taxable pay, including the SIS. It will rise gradually to 8.5% in 2033.
Do the OECD figures include contribution gaps?
No. They assume full careers from age 22. That is why the OECD presents them as minimum estimates: gaps, unemployment and informality would increase the savings needed.
