Key features of general pension regimes for old age

Chapter 6 of the Americas Social Security Report 2012 outlines the methods used to perform the calculations, describes the common patterns found in the formulas defined by legislations to calculate old-age pensions, and discusses the more critical assumptions needed to reach calculations of the next chapter.

The chapter describes the main features of general pension regimes for old age. Among these features are: design, minimum and maximum pensions, pensionable ages, early and late retirement, and years of contribution.

Work for older adults, technology and health

Chapter 5 of the Americas Social Security Report 2012 discusses the extent to which older adults are able to find decent and dignified work after the age of 60, balancing technological, medical, and preventive advantages, but recognizing that illness and fragility are a really for a large portion of the population.

Under the current structure of social security schemes, individuals do not have the necessary incentives to plan renewing their professional career. To facilitate the renewal of careers is required changes in educational programs and job training, and labor laws.

Individual decisions on retirement

Chapter 3 of the Americas Social Security Report 2012 analyzes how "social security wealth" or "pension entitlements" are generated, and how retirees spend their money. The realization of a retirement even does not depend only, and often not even mainly, upon the parameters of a retirement scheme. Individuals may decide to withdraw from the labor market before the statutory retirement age or to work several years more for reasons of need, family conditions, health, or personal motivation.

These are some of the results of the chapter:
- Individuals work more when their earnings are high and growing, and when they decline or their growth is sluggish, retirement becomes a more attractive option every year.
- More educated individuals tend to retire later in life because earnings growth is higher for them.
- Often workers move from a salaried job to the informal economy to improve their earnings levels.
- Labor market conditions affect workers' decisions on retirement.
- Consumption and work decisions are closely linked. When retirement can induce an excessive fall in consumption, individuals may decide to put it off for a few years.
- Persons seek to stabilize welfare, avoiding alternate periods of high well-being with others of a poor quality of life

Labor market behavior and retirement in the Americas

Chapter II of the Americas Social Security Report 2012 describes the main regional trends in labor variables around statutory retirement ages. It analyzes labor force participation, intensity of work by older adults, earnings of wotking older adults, characteristics of occupied labor, and urban/rural comparisons.

In previous notes we saw some graphs and results, but these are the main conclusions of the chapter:
- Individuals around retirement ages are working more in the Americas when compare 2010 with 1970, with few exceptions.
- There remains a decline in participation in the labor force that usually begins around age 50 and accelerates at age 60.
- Those staying in the market after age 50 have low unemployment, but they work gradually less hours per week.
- There is a very sharp decline in average earnings after age 50 in Latin America.
- By age 60, workers have become self-employed or employers.
- Young women work more in the urban sector, whereas adult women have higher participation in rural areas. Men in the rural sector have higher participation rates, except for the age groups between 30 and 59 years ald when rates are similar. Hours worked and wages are always higher in urban areas.

Spain approved the strategy "55 and Over"

The Spanish government approved the Global Strategy for Employment "55 and Over", which seeks to promote employment among older people, promote the extension of working life, and improve safety and health at work. More information here.

In Mexico, 28.5% of the EAP will live without a pension and in poverty

In Mexico, 28.5% of the economically active population (EAP) works in the informal sector, and without any type of coverage, they may (or already) arrived to the elderly destitute. More information here.

The number or young adults covered by health insurance increases in the United States

Even with the recession, the number of young adults covered by health insurance in the United States increased by about one million. Complete note here.