Impact of Aging and Pension System in Ecuador

  • 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

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[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.
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[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.
Published
2015-09-11