TN 6 (02-23)

GN 01739.025 Chilean Social Security Benefits for the Private Insurance System

A. Eligibility requirements

Although the private insurance systems pay different types of benefits, this section describes only retirement, survivors and disability benefits. These are the only benefits included within the scope of the agreement.

B. Policy for retirement, survivors and disability insurance for the Private Insurance System

Listed below are the eligibility requirements for Chilean retirement, survivors and disability benefits under the private insurance system.

1. Retirement benefits

Chile bases benefit amounts on the worker's total contributions to an individual capitalization account plus accrued investment returns. There are no minimum contribution requirements for entitlement to retirement benefits. At retirement age, a worker may choose to receive periodic withdrawals from their account, use the account balance to purchase an annuity from a private insurance company, or select a combination of the two. There are no benefit provisions for the spouse or children of a retirement beneficiary under this system.

a. Full retirement

To qualify for regular retirement benefits workers must:

  • have paid contributions to one of the Pension Fund Administrators; and

  • meet the age requirements; at least age 65 for men and at least age 60 for women.

b. Early retirement

A worker may receive benefits prior to the regular retirement age under the following conditions:

  • the worker's individual account balance must be sufficient to fund a benefit equal to or greater than 50% of the average of the worker's covered wages (adjusted for inflation) in the 10 years prior to the month of application; and

  • the worker's individual account balance must also be sufficient to fund a benefit equal to or greater than 110% of the minimum retirement benefit in effect at the date of application.

NOTE: When the applicant files for benefits prior to attaining full retirement age, Chile considers this as an application for early retirement benefits, which results in a permanent reduction of the benefit amount. If the applicant does not file for early retirement, the applicant should file for retirement benefits as close to full retirement age as possible.

2. Disability benefits

To qualify for disability benefits a worker must:

  • be under normal retirement age;

  • have an impairment that reduces earnings capacity by at least 66 percent; and

  • must have been contributing at the date of disability onset or made contributions in 6 out of the 12 months immediately preceding disability onset.

3. Survivors benefits

A survivor is eligible for a survivor’s benefit under the private insurance system if the deceased worker had coverage under employment or was entitled to retirement or disability benefits at the time of death.

a. Widows

A widow must have been married to the worker at least 6 months prior to the date of death, or 3 years if the marriage occurred while the deceased was receiving retirement or disability benefits. If there were minor children or the widow was pregnant at the date of death, the duration of marriage requirement does not apply.

b. Disabled widowers

If the appropriate Chilean agency declares a widower disabled, he is eligible for a benefit under the same conditions as a widow.

c. Surviving child

Benefits are payable to an unmarried child under age 18, age 24 if a student, or any age if disabled.

d. Funeral grant

Chile pays a one-time cash benefit subject to a monthly-adjusted ceiling to the surviving spouse, children, parents, or the person or entity paying the costs of the deceased worker's funeral.

e. Other beneficiaries

The unmarried mother of a deceased worker's biological children and the deceased worker's parents may receive survivor benefits under certain conditions. If there are no beneficiaries, the deceased worker's account balance becomes part of their estate.

4. Guaranteed minimum benefit

Under the private insurance system, the state guarantees a minimum benefit to beneficiaries who meet the following requirements:

a. Retirement benefit

20 years of contributions to either the old or the new system.

b. Disability benefit

  • 10 years of contributions; or

  • Two years of contributions in the five years immediately preceding disability onset; or

  • if the disability is due to an accident, contributing to the private insurance system at the date of onset.

c. Survivors benefit

  • the worker must have been receiving a benefit; or

  • the worker must have met the requirements for the guaranteed minimum disability benefit at the date of death.

C. Procedure for requests for information about Chilean benefits…

Advise individuals that we cannot provide official information about Chilean benefits and the private system. Refer inquiries to the following address:

Superintendencia de Administradoras de Fondos de Pensiones

Huérfanos 1273, piso 2,

Santiago, CHILE



To Link to this section - Use this URL:
GN 01739.025 - Chilean Social Security Benefits for the Private Insurance System - 02/08/2023
Batch run: 02/08/2023