In this edition of the Progress of the Pension Systems, we highlight the following:

Crisis in PAYGO systems worldwide. In Argentina, according to the report of the Congressional Budget Office, the majority of people over 45 will not be able to retire at the official retirement age, due to insufficient pension contributions. The report of the Argentine Social Development Institute (IDESA) also notes that the Sustainability Guarantee Fund (FGS) will only suffice for financing two months of deficit. In Costa Rica, the Investigating Commission found that the reserves of the Disability, Aging and Death Regime (IVM) pension fund will not suffice for paying pensions by 2030. In France, in turn, the social security expenditure deficit will multiply by 9 this year, to EUR 44.4 billion, following a deficit of EUR 5 billion in 2019.

México: The chairman of Amafore said that pensions can be improved without harming the industry. He also declared that international commissions standards could be achieved in the short term.

Colombia: A system for people earning less than the minimum wage to access social security, was established by decree. The measures seek to guarantee subsidized health care, an old age pension income, and work insurance.

El Salvador: Reforms were approved that will allow terminally ill citizens and Salvadorans living abroad to request the prompt return of their pension savings. To date, Salvadorans living abroad had to renounce their nationality to apply for the return of their pension savings.

Latin America: The most recent ECLAC document: “Pension systems in Latin America: Institutional framework, public expenditure and financial sustainability in times of COVID-19“ provides background information for creating a database of public spending on pension systems in the region, as well as projections of the financial commitments of pension systems.

To review the Progress of the Pension Systems in detail, download it here.