According to a report developed by ECLAC and the International Labour Organization (ILO), most elderly adults in Latin America do not receive pensions from the social security system, and extend their participation in the labour market.

The Economic Commission for Latin America and the Caribbean (ECLAC), pointed out that “according to data from eight countries in the region, an average of 57.7% of people who are between 65 and 69 years old, and 51.8% of people who are above 70 years old, do not receive a pension. The rates are even higher among women”.

The lack of income of a contributive retirement system among half of men, and mostly among women older than 60 years old in Latin America, is the main variable that forces them to remain active in the labour market.

“Between 2015 and 2050, the share of elderly people above 60 years old will grow from 7.5% to 15%. The main factor for this will be the aging population, followed by a small increase of labour participation among elder adults”, states the report.

According to ECLAC, the occupation rate among people who are 60 years old and above reaches 35.4% in the region. The share is elevated, even among age groups who have already crossed the legal retirement age, with 39.3% for the group that goes from 65 to 69 years old, and 20.4% for the group above 70 years old.

This pattern is inversely proportional to those nations that present a low coverage of pensions systems.

Around 7.2% of people above 60 years old work, even though they get paid a pension, which can be caused by the low income received, or by preference to remain active, particularly among people with higher education levels.

“We must expand pension systems’ coverage, and complement them with non-contributive pensions”, state Alicia Bárcena, executive secretary of ECLAC, and Jose Manuel Salazar, regional director of ILO.

According to the report, considering the speed of the aging process faced by several Latin American, analyzing the conditions and financing needed to make pension systems more inclusive and sustainable is key.  As regards the current situation of the labour market in Latin America, the report explains that during 2018 the region will experience a small economic recovery, and a 2.2% growth rate is expected, against the 1.3% growth rate reached in 2017.

Tackling informality by creating more modern, formal and inclusive markets is key to grant decent work.