Non-Contributory Benefits, Pension Re-Reforms and the Social Protection of Older Women in Latin America

Abstract

Gender inequalities are a key issue for most pension systems in Latin America. Contributory pension schemes that link benefit entitlements to work and earnings tend to reflect in the benefits they offer the gender gaps that prevail in the labour market. This deepened with the implementation of individual private accounts as part of structural pension reforms in a number of countries. This article evaluates how recent pension policies, including measures geared to coverage expansion and so-called pension 're-reforms' , have addressed gender gaps in pensions in four Latin American countries. It shows that the expansion of non-contributory pensions and a greater emphasis on redistribution are important for the protection of older women in a context of gendered labour markets and the unequal distribution of paid and unpaid work between women and men. Looking at the cases of Argentina, Bolivia, Brazil and Chile, the article identifies progress but also the persistence of gender gaps in pensions and emphasises the need for further measures to promote adequate social protection for older women.

Does a universal non‐contributory social pension make sense for rural China?

“…Non‐contributory social pensions promote social and family cohesion. Such pensions facilitate equality between men and women in later life because women, who typically earn less over the life course, are eligible regardless of employment experience (Arza, 2017). Non‐contributory social pensions also enable older adults to make contributions to financially strained families and thus enhance the status of older adults.…”

“…Clearly, a very low non‐contributory social pension would leave many rural residents in poverty. In Chile and Bolivia, it seems that the social pensions remain very low and, as a result, many older adults remain in poverty (Arza, 2017). The same is true in many African countries (Guven and Leite, 2016).…”

SDG 5: Gender Equality – A Precondition for Sustainable Forestry

“…Research from Chile and Mexico shows that childcare services can enhance gender equality if the state commits to such goals, gives sufficient financial resources and develops effective regulations (Staab and Gerhard 2011). Moreover, findings from Argentina, Bolivia, Brazil and Chile indicate that non-contributory pension funds can be a key measure to reduce gender gaps in benefits at old age (Arza 2017). Drawing on findings from a multi-country cash-transfer programme in sub-Saharan Africa, Asfaw (2016) concludes that promoting cash programmes can positively affect livelihoods as well as agricultural productivity, provided there is coordination with other sectoral development programmes and attention to local contexts.…”

Basic Old‐Age Protection in Latin America: Noncontributory Pensions, Coverage Expansion Strategies, and Aging Patterns across Countries

“…From the new benefit, a monthly deduction was made to compensate for the contributions missing. Open to all, the pension moratorium produced a massive increase in coverage rates, especially among women (Arza ). By 2015, pensions paid to older adults who joined the moratorium represented about 47 percent of all pensions paid, and the benefit amount was normally close to the legal minimum pension.…”