Impact of Aging and Pension System in Ecuador

Authors

  • Xavier Dávalos Instituto de Altos Estudios Nacionales

Keywords:

Pension system, ageing, social security, implicit pension debt.

Abstract

This paper about “Impact of aging and pension system in Ecuador” will examine the effects of population ageing on the medium and long term evolution of pension systems in Ecuador, between the years 2000 to 2011. It is organized into six sections. After the introductory section, section 2 provides demographic information on ageing trends in the Latin America countries, in international context. Section 3 gives information about the institutional framework in Ecuador, then in section 4 provides indicators, data and methods of analysis, and examines the effects of ageing population structures and rising life expectancy on pension system variables: spending on pensions, the financial position, pension liabilities and the implicit rate of return; it also includes a critical analysis of the criteria about the sustainability of unfunded systems. 5 provide a more systematic introduction to the concept of and indicators used for implicit pension debt. In the last section contains conclusions and recommendations.

Author Biography

Xavier Dávalos, Instituto de Altos Estudios Nacionales

Escuela de Gobierno y Administración Pública. Docente - investigador.

References

[1] A. Uthoff. Facultad Latinoamericana de Ciencias Sociales –FLACSO-: Seminario Internacional sobre Seguridad Social, 29 y 30 de enero del 2013, Quito-Ecuador. 2013.
[2] A. Uthoff. “La seguridad social en América Latina” Seminario Internacional sobre Seguridad Social, Facultad Latinoamericana de Ciencias Sociales –FLACSO-: 29 y 30 de enero del 2013, Quito-Ecuador. 2013.
[3] United Nation. Concise Report on the World Population Situation in 2014, New York, Department of Economic and Social Affairs. 2014, pp. 38.
[4] ECLAC/CELADE: La nueva era demográfica en América Latina y el Caribe, La hora de la igualdad según el reloj poblacional, División de Población. Nov. 2014, pp. 80.
[5] J. Bravo. “Envejecimiento de la población y sistemas de pensiones en América Latina”, in Seminarios y conferencias No.2, Seminario Responsabilidades Fiscales en Sistemas de Previsión, Santiago, Chile, ECLAC, 2-3 Sept, 1999, pp. 383-393.
[6] R. A. Lee. “A trans-cultural perspective of intergenerational transfers”, in Conference: Relaciones Económicas Intergeneracionales y Cambio Demográfico, Honolulu, Hawaii, IUSSP/EWC, Sept. 1995.
[7] J. Bravo. “Envejecimiento de la población y sistemas de pensiones en América Latina”, in Seminarios y conferencias No.2 Seminario Responsabilidades Fiscales en Sistemas de Previsión, Santiago, Chile, ECLAC, 2-3 Sept. 1999, pp. 383-393.
[8] J. Bravo. “Envejecimiento de la población y sistemas de pensiones en América Latina”, in Seminarios y conferencias No.2 Seminario Responsabilidades Fiscales en Sistemas de Previsión, Santiago, Chile, ECLAC, 2-3 Sept. 1999, pp. 383-393.
[9] World Bank: Adverting the Old Age Crisis, Policy Research Report, Oxford, U.K., Oxford University Press, 1994, p. 436.
[10] W. Leibfritz D. Roseaveare E. Fore E. Wurzel. “Ageing populations, pension systems and government budgets: Simulations for 20 countries”. OECD Economics Department Working Papers, No. 168, 1996, p.71.
[11] K. Kinsella Y. Gist (1995): Older workers, Retirement, and Pensions. A comparative Invernational chart book, U.S. Department of Census, Dec. 1995, p. 93.
[12] P. Orzag J. Stiglitz: “Rethinking Pension Reform: Ten Myths about Social Security Systems”, Sebago Associates, Inc., The World Bank, Presented at the conference on “New ideas about old age security”, Washington, D.C. September 14-15, 1999, p. 48.
[13] At first, another approach would be to realize longitudinal analyses, for countries with chronological reliable series of information on expense and revenue. This needs statistical consistent and complete series that they include at least four or five decades.
[14] J. F. Jimeno. “La equidad intrageneracional de los sistemas de pensiones”, In: Revista de Economía Aplicada, Madrid, 2003, p.44.
[15] This is the “dependency ratio”. If the coverage rate of the pension system –the number of pensions to the eligible population-, remains constant, then this dependency ratio is just the quotient between the ratio of the number of pensions to employment and the coverage rate.
[16] J. Bravo: Envejecimiento de la población y sistemas de pensiones en América Latina, in Seminarios y conferencias No.2 Seminario Responsabilidades Fiscales en Sistemas de Previsión, Santiago, Chile, ECLAC, 2-3 Sep. 1999, pp. 125.
[17] J. Bravo: Envejecimiento de la población y sistemas de pensiones en América Latina, in Seminarios y conferencias No.2 Seminario Responsabilidades Fiscales en Sistemas de Previsión, Santiago, Chile, ECLAC, 2-3 Sep. 1999, pp. 126.
[18] Household survey, ENEMDU - INEC (years: 2000, 2006, 2009 and 2011). Ecuador.
[19] Household survey, ENEMDU - INEC (years: 2000, 2006, 2009 and 2011). Each year from left to right. Ecuador.

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Published

2015-09-11

How to Cite

Dávalos, X. (2015). Impact of Aging and Pension System in Ecuador. American Scientific Research Journal for Engineering, Technology, and Sciences, 14(1), 156–171. Retrieved from https://asrjetsjournal.org/index.php/American_Scientific_Journal/article/view/875