Chileans tapped into pensions to survive the pandemic – now what?

Chile’s government has allowed people to withdraw funds from their pensions to weather the coronavirus crisis, but the decision could leave millions without a lifeline in old age.

Carolina Zillmann, 59, owns a small plot of land near La Serena in northern Chile. She lives by herself and takes on jobs as a landscaper to make ends meet. She also has a small cabin that she rents out for $527 to add to her monthly income. But so far during the coronavirus pandemic, Zillmann has made two withdrawals of one million pesos each ($1,317) from her retirement account to cover her personal expenses. She used the money to pay overdue property taxes and make needed home repairs. She now has six million pesos (less than $8,000) left in her individual account with one year to go before she is eligible for retirement, which Chile sets at 60 for women and 65 for men.