What are you searching?

FIAP > Boletín – Otras Publicaciones > Social pensions in the Americas: Recent developments – ISSA – October 2023
22 November, 2023

Social pensions in the Americas: Recent developments – ISSA – October 2023

This report emphasizes that non-contributory pension programs complement contributory social security systems, since they provide a guaranteed source of income to people who are not adequately protected by other forms of social security. In this way, non-contributory schemes can be an effective tool to fight poverty in old age, promote social inclusion and mitigate the effects of inequalities in the labor market. The article analyzes recent policy reforms affecting social pensions in Chile, Ecuador, Jamaica and Mexico, and presents an overview of social pension increases in the region. Among the conclusions of the report, it stands out that:

  1. While non-contributory pensions fill the shortcomings of contributory pensions, integrating workers lacking coverage into contributory systems remains an important way to improve living standards in old age, making non-contributory pensions economically sustainable and achieve broader policy objectives.
  2. The constant work aimed at increasing access to contributory systems and formal labor not only improves living standards, encourages inclusion and promotes decent work, but is essential to avoid excessive public spending on non-contributory pensions, which could jeopardize its sustainability. Therefore, coordination between non-contributory pensions and contributory systems is essential.
Suscribe to the Fiap International Newsletter Sign up here