The Aging in Latin America: Effects on Public and Private Pensions and Lessons for Developed Countries.
Abstract
This paper studies the effects of aging on Latin American pension systems, describes public and private pensions in the context of aging, analyzes the types of reforms, the effects of privatization and policies to address the challenges of an aging population, examines parametric reforms in public systems, and draws lessons from the Latin American experience for developed countries. It concludes that it is essential to increase retirement ages taking into account the ageing process. Both public and private systems are affected by aging and both must increase retirement ages or contributions, the former to sustain the financial-actuarial balance and the latter to maintain the pensions' amount and improve them. The Latin American experience with its structural reforms alerts developed countries to the adverse effects of privatization and the high transition cost they would have to finance. Parametric reforms are essential to face the challenges posed.
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References
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