Performance and Challenges of the Income Protection System for Older People in Ecuador
The purpose of this work is to analyze the performance of the Ecuadorian pension system, its challenges, and available policy options. Therefore, the study analyzes coverage, financing sufficiency, and sustainability indicators that were created ba...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/210911565697273222/Performance-and-Challenges-of-the-Income-Protection-System-for-Older-People-in-Ecuador http://hdl.handle.net/10986/32271 |
| Summary: | The purpose of this work is to analyze
the performance of the Ecuadorian pension system, its
challenges, and available policy options. Therefore, the
study analyzes coverage, financing sufficiency, and
sustainability indicators that were created based on
information from the Encuesta Nacional de Empleo, Desempleo
y Subempleo (National Employment, Unemployment and
Underemployment Survey) that was carried out over 2003-16.
Likewise, actuarial simulations are made by using the World
Bank pension reform options simulation toolkit. The findings
show that, although in the latest 13 years there has been
coverage extension, resulting from an increase in reported
employment and an extension of noncontributory pensions,
current coverage is still insufficient. In addition to the
challenge posed to coverage extension, in the medium term,
population aging would exert some pressure on financial
sustainability that, within the current framework, would
imply a deficit trend starting in the mid-2030s. However,
some public policy areas, parametric as well as structural,
have been identified that, together with an extension of
noncontributory coverage, may provide a more supportive and
sustainable scheme. |
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