Chile replaced its Pay-As-You-Go social insurance pension system in the early 1980s with a private pre-funded system of individual savings accounts which covers old-age, disability and survivor contingencies. Pension reform was successful in many ways: it restored public confidence in pension saving; pre-funding of pensions has contributed to the development of financial markets and economic growth; and projected future public pension outlays in Chile are lower than in many OECD countries (and far less susceptible to the dynamics of ageing populations). However, pension reform failed to achieve its coverage objectives, and many Chilean workers, including many women, youth and low-income workers with low levels of educational attainment, either did not make sufficient contributions to obtain an adequate contributory pension or have no coverage at all. The coverage problems contributed to a major pension reform in 2008, which introduced a basic solidarity pension as of right, and targeted measures to stimulate coverage among workers with no or little pension saving. Reform also aims to develop a third tier of voluntary private pension saving. In all, Chile’s pension system is developing towards the three-pillar pension norm, which is often held as an international benchmark. This chapter discusses the social policy aspects of the reformed pension system and, in particular, the coverage issues which in many ways have proven to be the Achilles heel of Chilean private pension system.