By Gustavo Stok - Thursday, October 27, 2016
Pension systems in Latin America are mired in a severe crisis. Both public and individual capitalization, or defined contribution, systems have failed to respond to the effects of demographic changes and the large informal labor market in Latin America. The result is low pensions and a smaller number of over 65s receiving a pension at all, which has sparked protests and mounting criticism in many countries of the region. This report looks at how voluntary savings plans for retirement have developed in recent years and analyzes their prospects in several countries in the region. In addition, we will show how important these schemes can be in offsetting some of the shortfalls of pension systems in Latin America.