The Future of Work in Latin America and the Caribbean: How to Move Towards Sustainable Pension Systems for Longer-Lived Societies?

Accesible PDF image
Cuéllar, Ekaterina;
Gamboa, Daniel;
Jun 2023
This edition of the series 'The Future of Work in Latin America and the Caribbean' examines the challenges and opportunities that arise for the region's pension systems in the face of an aging population, technological advances, climate change, and changes in labor markets. Different studies predict that by 2050, the region will be characterized by low birth rates and increased longevity, a scenario that could compromise the ability to ensure adequate and sustainable pensions unless reforms are implemented to adapt pension systems to these trends. However, these same trends offer opportunities: technology, for example, can facilitate the integration of groups normally excluded from the pension system and improve the operational efficiency of pension institutions. This document urges authorities and decision-makers in Latin America and the Caribbean to rethink retirement and consider aging not as an obstacle but as a catalyst for creating more prosperous and just societies. For this purpose, a comprehensive approach to reforms that goes beyond the structure of pension systems and incorporates experiences from countries with more advanced aging processes is essential. Public policies should focus on four key areas: (i) health and dependency care in old age; (ii) labor markets, formalization, accumulation, and updating of human capital; (iii) pensions; and (iv) institutional innovation and digital transformation. This strategic vision will be crucial to forge a future where retirement is synonymous with dignity, prosperity, and equity.