¿Why an universal coverage in Latin America and the Caribbean?
In the incoming decades, pensions will become one of the cornerstones of economic and social policies in Latin America and the Caribbean (LAC).
The reason? In 2050 there will be in the region three times more seniors than now, with an increased life expectancy and, therefore, more needs of being taken care.
Those future seniors are today in a labor market where only 4 out of 10 workers contribute to the pensions system. This means that, today, 130 million people are working without saving for their pensions in LAC.
In the absence of reforms, even with a sustained growth in the region, 1 in 2 retirees will not have an adequate pension, leaving between 66 and 83 million seniors or families depending on the state for support. This will be economic, fiscally and socially unsustainable.
In the book Better pensions, better jobs: towards universal coverage universal in Latin America and the Caribbean (link to pdf), the specialists from the Inter-American Development Bank Mariano Bosch (link to bios), Angel Melguizo (link to bios) and Carmen Pages (link to bios) provide an overview of the pensions coverage current state in the region and illustrate ways to move towards universal coverage.
Their proposals advocate the need to move towards universal coverage in the region, not only as a way to fight poverty in old age by ensuring a pension for all, but also as part of an agenda of increasing formal employment and productivity.