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IS The Pensions Problem In Welfare States Intractable? This question can be taken from two different angles, the optimistic and the pessimistic. I will structure this essay around the optimistic view and discredit the pessimistic. Therefore my answer will be structured around the belief that the pensions problem is not intractable. This is due to the fact that, there have been examples in the past like Chile, which have managed to solve most of their pensions problems. The Government in Chile had achieved this under the administration of Pinochet in the 70's. Whereby they offered people incentives to contract out of the state pensions and then to sign up to private pension funds which were offered by a number of firms. The Thatcher government in the UK offered a similar scheme where up to 4 million people contracted out, now over half of the population is on a private pension....

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