Sistemas de proteccion social para el adulto mayor en America Latina y el Caribe / Social protection systems for older adults in Latin America and the Caribbean

Only one half (50.1 percent) of all older adults in Latin America currently receive benefits under some form of social protection system for the elderly, either through social assistance or social security programs, or have access to a savings plan for old age in the form of individual capitalization accounts (ICA) based on mandatory or voluntary contributions. The other half enjoys no social protection at all; its consumer and health needs are covered through accrued assets, voluntary family transfers, or charitable deeds. Social security pension plan reforms and the creation of social-security-based savings plans for old age in the form of ICA have failed to yield the expected results in terms of coverage and benefits. Over-all, reforms have led to the dismantling of social-security-based social protection systems for the elderly without creating alternative mechanisms for social protection. This document describes the various social protection systems and savings plans for old age that are in place in countries of the Region and looks at current challenges in terms of correcting "government failures" and applying policies that will redress "market failures", so that the working population can count on having enough resources to satisfy its consumer and health needs after retirement (AU)

Equity and systems of intergenerational transfers in Latin America and the Caribbean

Intrafamilial intergenerational transfers involve direct transfers from one generation to another via family connections. Family ties secure the claims of one group of individuals on the goods or services produced and delivered by other family members. When the family is unable to produce sufficient godds or services to meet the demands of all family members, then family assets have to be augmented. In addition to the transfer of goods and services, these intrafamilial transfers include emotional and moral support, personal companionship, and other intangibles. The mechanisms for these intrafamilial transfers are not always stated explicitly. Instead, the mechanisms are frequently worked out according to the availability of kin and the expectations of how limited resources are to be distributed among generations within a family. In the case of poor families, the balance is often tilted in favor of the younger generation, and the burden of old age care becomes a major stress if there is not additional support from the broader society (AU)