pension coverage in Latin America

This chart is interesting. Bolivia stands out as the only country of the ten that has a universal pension in place.

The black bars refer to the percentage of the labor force that contributes to a social security scheme. Many contributors will never receive a pension because they move in and out of formal employment, so do not contribute long enough to qualify for a pension. The red bars refer to the percentage of the retirement-age population that receives any sort of pension (contributory or noncontributory).

The authors of the article observe “Recently, the Mexican president introduced a pension reform bill to Congress that would set up a universal noncontributory old-age benefit.” – without cautioning that the proposed pension, despite its name, is not universal.

pension coverage

Source: US Social Security Administration, “Social Pensions and Subsidized Benefits in Latin America“, International Update (September 2013).

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