ILO paper on social protection for older persons

The ILO has published a paper on Social Protection for older persons: Key policy trends and statistics 2017-19 (link). This policy paper: (i) provides a global overview of the organization of pension systems and their contribution to the Sustainable Development Goals (SDGs); (ii) monitors SDG indicator 1.3 for older persons, analyses trends and recent policies in 192 countries, including the extension of legal and effective coverage in a large number of low- and middle-income countries, through a mix of contributory and non-contributory schemes; (iii) looks at persisting inequalities in access to income security in old-age; (iv) presents lessons from three decades of pension privatization and the trend to returning to public systems; (v) calls for countries to double their efforts to extend system coverage, including the extension of social protection floors, while at the same time improving the adequacy of benefits.
Key messages:
·         Pensions for older women and men are the most widespread form of social protection in the world, and a key element in Sustainable Development Goal (SDG) 1.3. At the global level, 68 per cent of people above retirement age receive a pension, either contributory or non-contributory.
·         Significant progress has been made in extending pension system coverage in developing countries. Universal pensions have been developed in Argentina, Belarus, Bolivia, Botswana, Cabo Verde, China, Georgia, Kyrgyzstan, Lesotho, Maldives, Mauritius, Mongolia, Namibia, Seychelles, South Africa, Swaziland, Timor-Leste, Trinidad and Tobago, Ukraine, Uruguay, Uzbekistan and Zanzibar (United Republic of Tanzania). Other developing countries, such as Azerbaijan, Armenia, Brazil, Chile, Kazakhstan and Thailand, are near universality.
·         However, the right to social protection of older persons is not yet a reality for many. In most low-income countries, less than 20 per cent of older persons over statutory retirement age receive a pension. In many developing countries, a large proportion of older persons still depend heavily on family support arrangements.
·         Observed trends vary substantially across regions and even between countries within the same region. In countries with comprehensive and mature systems of social protection, with ageing populations, the main challenge is to maintain a good balance between financial sustainability and pension adequacy. At the other extreme, many countries around the world are still struggling to extend and finance their pension systems; these countries face structural barriers linked to development, high levels of informality, low contributory capacity, poverty and insufficient fiscal space, among others.
·         A noticeable trend in developing countries is the proliferation of non-contributory pensions, including universal social pensions. This is very positive, particularly in countries with high levels of informality, facing difficulties in extending contributory schemes. Trends show that many countries are succeeding in introducing a universal floor of income security for older persons.
·         Public schemes, based on solidarity and collective financing, are by far the most widespread form of old-age protection globally. Pension privatization policies, implemented in the past in a number of countries, did not deliver the expected results, as coverage and benefits did not increase, systemic risks were transferred to individuals and fiscal positions worsened. As a result, a number of countries are reversing privatization measures and returning to public solidarity-based systems.
·         Recent austerity or fiscal consolidation trends are affecting the adequacy of pension systems and general conditions of retirement. In several countries, these reforms are putting at risk the fulfilment of the minimum standards in social security, and eroding the social contract. Countries should be cautious when designing reforms to ensure that pension systems fulfil their mission of providing economic security to older persons.