Perceptions of affiliates to private pension funds

Main Article Content

Jorge Braulio Guillen


SEM Models, Private pension funds, Transfers


The following paper studies the determinants of choosing a private pension fund institution by processing a questionnaire of 514 affiliates. The questionnaire attempts to measure perceptions of the consumer with respect to their private pension fund institution. Using a structural equation model, we found that socioeconomic variables are irrelevant but some perceptions like the return of portfolio and leadership of the private pension fund were relevant in the choice of a private pension fund institution. We contrast the model in two different periods of time between 2009 and 2016. The periods before and after financial turmoil in the stock market.


Download data is not yet available.
Abstract 61 | PDF Downloads 60 HTML (Español) Downloads 0


Asociación Internacional de Organismos de Supervisión de Fondos de Pensiones (AIOS). Database.

Acuña, R., Palomino, M., Villar, L., Villagómez, A., and Valero, D. (2014). Cómo fortalecer los sistemas de pensiones latinoamericanos. Experiencias, lecciones y propuestas Tomo II. Chile: Sura Asset Management. Available at

Antolín, P., Stewart, F. (April 2009). Private pensions and policy responses to the Financial and Economic Crisis. OECD Working Papers on Insurance and Private Pensions (36): 1-37. Available at

Bagozzi, R. P. and Yi, Y. (2012). Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science, 40(1), 8-34.

Barassi, M., Bertín, H., and Musalem, A. (October 2009). Modalidades previsionales en los regímenes de capitalización de América Latina. Asociación Internacional de Organismos de Supervisión de Fondos de Pensiones, AIOS. Available at file:///C:/Users/hdiaz/Downloads/Modalidades_previsionales_America_Latina.pdf

Barrientos, A. (2001). The efficiency of pension fund managers in Latin America. Working Paper. University of Manchester.

Bentler, P. M., and Bonett, D. G. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88(3), 588-606.

Besley, T. and Prat, A. (March 2005). Credible pensions. Fiscal Studies, 26(1): 119-135. Available at

Blommestein, H., Janssen P., Kortleve N., and Yermo, J. (2009). Evaluating the design of private pension plans: costs and benefits of risk-sharing. OECD Working Papers on Insurance and Private Pensions (34). Available at

Cerda, R. (2008). The Chilean pension reform: a model to follow? Journal of Policy Modeling, 30(3), 541-558.

Chaitip, P., Chaiboonsri, C., Kovacs, S., and Balogh, P. (2010). A Structural Equation Model: Greece’s tourism demand for tourist destination. Applied Studies in Agribusiness and Commerce, (4). Available at

Corbo, V. and Schmidt-Hebbel, K. (May 2003). Macroeconomic effects of pension reform in Chile. Estudio presentado en la Conferencia de la Federación Internacional de Asociaciones de Pensiones: Pension Reforms: Results and Challenges, Cancún, México.

Gill, I. S., Packard, T., and Yermo, J. (2005). Keeping the Promise of Social Security in Latin America. Palo Alto, CA: Stanford University Press; Washington, DC: World Bank.

Goldberger, A. S. (1972). Structural equation models in the social sciences. Econometrica, 40(6), 979- 1001.

Impavido, G., Lasagabaster, E., and Garcia-Huitron, M. (2010). New policies for mandatory defined contribution pensions: industrial organization models and investment products. Washington: World Bank. Available at License: CC BY 3.0 IGO.”

Jöreskog, K. G. and Sörbom, D. (1982). Recent developments in Structural Equation Modeling. Journal of Marketing Research, 19(4): 404-416. Available at

Kay, S. J. (July 2009). Political risk and pension privatization: the case of Argentina (1994-2008). International Social Security Review, 62(3):1-21. Available at 246X.2009.01335.x

MacCallum, R. C., Browne, M. W., and Sugawara, H. M. (1996). Power analysis and determination of sample size for covariance structural modeling. Psychological Methods, 1(2):130-149.

Mesa-Lago, C. (2014). Reversing pension privatization: The experience of Argentina, Bolivia, Chile and Hungary. Geneva, ILO, ESS. (Working Paper Nº 44, pp. 32).

Melguizo A., Bosh M., Pages C. (2015) Better pensions, better jobs: status and alternatives toward universal pension coverage in Latin America and the Caribbean. Journal of Pension, Economics and Finance. Volume 16, Issue 2 pp. 121-143

Munnell, A. H. and Sundén, A. (2001). What determines 401 (K) participation and contributions. Social Security Bulletin, 64: 64.

Pratami, P., Suharjo, B., and Nugrahani, E. (2018). Intention model analysis of Bogor Society against Pension Fund in retirement planning. International Journal of Managerial Studies and Research (IJMSR) Volume 6, Issue 9, September 2018, pp. 15-30.

Queisser, M. and E.R. Whitehouse (2006), “Neutral or Fair? Actuarial Concepts and Pension-System Design”, OECD Social, Employment and Migration Working Paper No. 40, OECD, Paris

Ring, P. J. (2005). Trust in UK pensions policy: a different approach? Policy and Politics, 33(1): 55-74.

Titelman, D., Pérez-Caldentey, E., and Pineda, R. (August 2009). ¿Cómo algo tan pequeño terminó siendo algo tan grande? Revista Cepal, (98),7-34. Available at

Van Dalen, H. P. and Henkens, K. (2018). Do people really want freedom of choice? Assessing preferences of pension holders. Social Policy & Administration. Volume 52, Issue 7.

Westland, J. C. (2015). Structural Equation Modeling: from paths to networks. New York: Springer.