Under our new system, you don't have to pressure anyone. It asks you at what age you want to retire. You answer 55. The computer then does some calculations and says that you must contribute 12.1 percent of your income to carry out your plan. You then go back to your employer and instruct him to deduct the appropriate amount.
Workers thus translate their personal preferences into tailored pension plans.
If a worker's pension savings are not enough at the legal retirement age, the government makes up the difference from general tax revenue. Each AFP operates the equivalent of a mutual fund that invests in stocks, bonds, and government debt. Not a dime of the workers' money is touched in the process. Workers are free to change from one AFP to another. That creates competition among the companies to provide a higher return on investment and better customer service, or to charge lower commissions.