FIAP > Boletín – Recientes > FIAP Pensions Note: Crisis in the public PAYGO systems: The cases of Spain, Costa Rica and Brazil – September 2017
18 December, 2017
FIAP Pensions Note: Crisis in the public PAYGO systems: The cases of Spain, Costa Rica and Brazil – September 2017
Ongoing population aging has put the PAYGO pension systems in check. The PAYGO pension systems are in crisis worldwide. In order to address their financial issues, countries have had to implement a series of parametric reforms.
The specific cases of Spain, Costa Rica and Brazil, whose distribution systems have shown to be financially unsustainable, are analyzed.
The serious plight of the PAYGO systems highlights the need to incorporate individually funded systems, which are financially sustainable, and which could also help to compensate for the loss of benefits experienced by pensioners due to the constant reductions in the benefits of the public PAYGO systems.
