CBS reported on the privatized social security program in Chile...

[whistle]

...which was set up 25 years ago, by U.S. investment bankers. Chile has a current population of about 16.8 million people, of which 10.1 million are 16 year old or older. However, only 3.2 million workers actually have a privatized government social security program. For them they must put 10% of their wages into the program from every paycheck. This was kicker that got me. In addition, they must pay 2.3% of wages for administrative costs, that's a whopping 23% right off the top!!!

Chile's adult workforce probably numbers about 6.5 million persons, so only half of all adults are in the private social security program. The rest simply can not afford to set aside 12.3% of their wages, because they would not be able to live. It also appears that corporations in Chile contribute nothing to the program. The plans according to the CBS report is doing well for those who are in it, but that was a comment, no supporting data was given. Chile has also had impressive economic growth and strong gains in the stock market, but again, no numbers were shared in the report. By 2050 the population of Chile will be around 23 million.

I believe as the Chilian population ages, and these large numbers of non-social security workers go into retirement and are unable to work, Chile's working population will have to make a social decision, support the emerging poor elderly through increased welfare, or let them die off.

<link to Chile's population pyramid 2050>

http://www.census.gov/cgi-bin/ipc/idbpyry.pl?cty=CI&maxp=844307&maxa=80&ymax=250&yr=2050&.submit=Submit+Query

I see a very similar situation for the U.S. but with ten times the numbers.