Does the chilean pension model influence life satisfaction? a multilevel longitudinal analysis

Abstract

This study assesses the influence of the Chilean old-age pension model on the life satisfaction of older adults across the world. Numerous countries have implemented similar old-age pension reforms, combining individualization of risk through pension privatization and redistribution of resources through mechanisms such as non-contributory pensions. Using data for 126,560 adults age 45 and over living in 91 countries over the period 1981–2008, and employing three-level hierarchical linear regressions, this study finds that on average redistribution increases life satisfaction, while individualization has no significant effect. However, the relationship between pension policy and life satisfaction varies in complex ways across countries.