Impact of Aging and Pension System in Ecuador

Xavier Dávalos

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.


Keywords


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

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