The present paper explores the complex setting of the Chilean pension reform to make a theoretical argument about institutional complementarities. The reform created a situation in which a specific kind of action might led a group of actors to try to take advantage of the possible returns granted by the new norms. However, because there was too much at stake for authorities, the government implemented strict regulation to avoid abuses of the Chileans’ retirement savings. Two possible institutional complementarities can exist in such a setting. The first one would be taking advantage of the resource availability within the labour market, using it to finance productive activities improving growth and creating increasing returns; and, second, one where investments rules would compensate the inherent risks involving the financial intermediation. After three decades of existence, the pension system is a contentious issue in Chilean politics leading to successive reforms in recent years.
