Beyond the Privatisation and Re-Nationalisation of the Argentine Pension System: Coverage, Fragmentation, and Sustainability
46 Pages Posted: 19 Dec 2012
Date Written: November 29, 2012
In the last decades, the pension system in Argentina has experienced important changes that included the introduction of an individual account defined-contribution component (or individual capitalisation) in 1994 and its subsequent reversal to a defined benefit pay-as-you-go pension scheme in 2008. After the 2001 crisis, the favourable fiscal position allowed the implementation of policies that reversed the decline in pension coverage to unprecedented levels, reaching over 90% of the elderly. This article summarizes the main changes in the pension system in terms of its institutional organisation, financing and coverage, describes the current situation, and outlines the sustainability challenges that face future pension policy.
Keywords: pension reform, social security, elderly welfare, Argentina, pay-as-you-go, individual retirement accounts
JEL Classification: H55, J14, J26
Suggested Citation: Suggested Citation