The Americas Social Security Report celebrates 10 years

The Americas Social Security Report celebrates 10 years since its first publication. Reports have addressed specific topics relevant for social security, intended to provide information to support the decision making process of our members and other public and private entities. The Americas Social Security Report 2013 summarizes the most relevant issues of past reports. In coming days we´ll post the abstracts from 2002 to 2012.

The Americas Social Security Report 2002 – Financing Problemsand Options for Solutions reviews the theory and evidence of the reasons for the financial stress faced by most systems in the continent, and the options available. Demographic changes, low productivity/wage growth, high informality, inadequate reserves management and unbalanced design (between contributions and benefits) put defined benefits systems in an unsustainable situation. While defined contributions systems can help in solving the financial problems, these schemes are not free of financial stress due to the need to finance the transition cost and minimum guarantees. The Report examines five ways  to improve the financial situation of schemes: i)  raise in contributions; ii) limitation of benefits; iii) improving the valuation of benefits by affiliates; iv) increase in public funds (from general revenues) directed to social security; and v)  whole change of model (from defined benefit, to defined contribution in pension systems). Each country should find their own solution.