As a result Chile’s old-age pension system has reduced elderly poverty from around 23% in 2008 to 20% in 2011, thanks to this reform in that introduced a solidarity pension. However, the average pension remain modest among other things because they are mostly financed by mandatory contributions that remain low (10% of earnings - compared to 20% on average across the OECD). In Chile low earners’ pension benefits replacement rate is only between 50% and 60% of their pre-retirement earnings, among the lowest rates in the OECD (Figure 6).