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GAA has compiled a number of articles and reports focused on social pensions, as well as a list of sources of information. We believe that older persons have the unconditional right to income security. Universal Social Pensions are the most effective way to provide dignity to older persons.
The world is aging fast. Developing nations increasingly face difficulties supporting their older population. In most developing countries, the elderly live at the bottom of the socio-economic strata. Older women, in particular, confront harsh conditions. Women usually take care of their children and family, an activity that puts them in a disadvantaged position when older. Many people in the developing world hold informal jobs or work without wages in rural areas. These older persons enjoy no proper pension system have scarce retirement savings, if any. Most poor countries have no pension system, save for the military and government officials. By providing cash transfers to older persons, governments can meet their obligation to protect the most vulnerable sector in their society.
Where social pensions exist, older persons share their benefits with the members of their household, buying food, supplies, and proving clothes and school materials for their grandchildren. Often older persons care for relatives infected with HIV/AIDS, as well as look after their orphaned grandchildren. In the latter case, social pensions save lives.
Recent examples of several poor countries that have implemented a social pension system show that they are neither complicated nor very costly. In fact, financial projections (see reports and articles) show that social pensions take less than 3% of a national budget.
Page created on: January 2007
Definitions
Social Pension(s): generally defined as a non-contributory cash income given to older persons
(usually by the government)
Alternative words: cash transfers, non-contributory pensions, social
protection pensions
Universal
Social Pension(s): cash income given to all older persons, regardless of their socio-economic
status.
Means-Tested
Social Pensions: solely for the poor and are conditional on the level of income.
Social
Protection: a
system that provides basic health, education, and income security to all
population or to a certain group (usually the most vulnerable: children,
older persons, women)
Fact Sheet
Social
Protection: Facts and Figures
May 1, 2006
Social pensions:
Have positive social
and economic effects
With a pension, older people can:
· afford to eat at least one meal a day
· access basic services such as credit, health care and water
· invest in income-generating activities and the health and education of
dependants
· support the millions of children in their care orphaned by HIV/AIDS or
conflict and emergencies
· break the cycle of chronic poverty from one generation to the next.
Help reduce extreme poverty and hunger
· The first target of Millennium Development Goal 1 is, by
2015, to halve the proportion of the population whose income is less than a
dollar a day. Social pensions can contribute to the achievement of this target.
· Social pensions can reduce the number of people living on less than a dollar
a day. In South Africa, the pension reduces the number of people living below
the poverty line by 5% (2.24 million).
· They can reduce the poverty-gap ratio. The pension reduces the ratio by more
than 13% in South Africa and almost 8% in Brazil.
· Social pensions can increase the share of the poorest 5% of the population in
national consumption. They increase the income of this group of the population
by 100% in Brazil and by 50% in South Africa.
Contribute to the human-rights agenda
· Social pensions support the rights of older people and their contribution to
development.
· They build good governance and political support for citizenship.
· They support social cohesion and household coping mechanisms.
· Introducing a social pension helps to reduce gender inequality in income and
quality of life between older women and men.
Effectively target aid at minimum cost
· In Brazil, pensions reach 5.3 million poor older people at 1% of gross
domestic product (GDP). A pensioner in the family reduces a household’s
probability of becoming poor by 21%.
· In South Africa, pensions reach 1.9 million poor older people at 1.4% of GDP.
A pensioner in the family reduces a household’s probability of becoming poor
by 11%.
· Social pensions target older women, who are among the poorest and most
vulnerable people in developing countries.
· Social pensions deliver support to children, bringing educational and
nutritional benefits.
Improve the life chances of orphans and vulnerable children
· In Tanzania, where there is no pension, out of 146,000 children orphaned by
HIV/AIDS, only 1,000 attended secondary school, because their grandparents could
not afford the fees.
· In Zambia, a pilot cash-transfer scheme to older people caring for orphans
has improved school attendance.
· In rural Brazil, pensions are associated with increased school enrolment,
particularly of girls aged 12-14.
· In South Africa, girls living in a household with an older woman who receives
a pension are 3-4 centimeters taller than girls in households with older women
who do not receive a pension.
Are feasible and affordable
· The cost of delivering universal benefits is not beyond the means of
resource-poor countries.
· The cost of implementing large-scale social pension schemes is less than 2%
of GDP in Namibia and 1.4% in South Africa.
· Administration accounts for only 2-3% of benefit payments in Botswana and
Mauritius.
· Universal provision of social pensions to older people is administratively
simpler and less expensive than means-tested benefits.
Background Documents
Worldwide, many ageing advocates and their organizations see Social Pensions as a key resource to reduce old age poverty in poor countries. Increasingly, these non-contributory pensions awarded on the basis of age figure as a primary development strategy. In the field of aging, HelpAge International (our partner organization) has carried extensive research on how social pensions lift older people out of poverty. Institutions such as the World Bank, the Inter- American Development Bank, and the International Labour Organization now identify social pensions as a good method to help the help the poorest elderly. UN agencies dealing with aging and/or development urge governments to consider basic social protection and social pensions for older persons.
 Social Protection for Older People: A Plan of Action (October 2007)
The Social Watch Report 2007 entitled, “In dignity and rights. Making the universal right to social security a reality,” was launched October 24 at United Nations Headquarters in New York. It features GAA President Susanne Paul and then Program Coordinator Alischa Kugel’s article on “Social Protection for Older People: A Plan of Action.”
Social Security for All: Investing in Global Social and Economic Development (August 2006)
The International Labor Organization’s social security department launched a “Global Campaign on Social Security and Coverage for All.” This paper shows that their program is not that ambitious: national social security systems can make a major contribution to the achievement of the Millennium Development Goals. The extension of social security for all is nothing less than a basic human right (article 22 of the United Nations Declaration of Human Rights). The authors of he paper stress that implementing minimum social standards at the national level will reduce international transfers and other financial development aids. Economically, extending social security in an aging world is realistic: it is proved in the developed countries that social transfers to the elderly are mainly spent and consequently redistributed.
Social
Protection as a Productive Factor (November 2005)
This paper by the International Labour
Organization's Committee on Employment and Social Policy argues in favor of
income security and basic health and social services to lift extremely
vulnerable persons out of poverty. This approach, presented by the ILO for
discussion and review, would promote overall productivity and economic
growth in nations. Older persons would benefit as well.
 Social
Transfers and Chronic Poverty: Emerging Evidence and the Challenge Ahead
(October 2005)
Developing countries are turning more and more to social pensions. The World
Bank’s 2006 World Development Report even recognizes their role in tackling
poverty and inequality. Indeed social pensions offer a cheaper and more
effective option to the humanitarian assistance This DFID (Department for
International Development) practice paper summarizes how countries deal with
the main challenges as they install social pensions. What are the issues of
such social transfers? Here they are: Developing appropriate mechanisms of
co-ordination between government and other ministries, getting support of UN
agencies and NGOs, ensuring that the transfers reach the poorest through
delivery systems protected against corruption, and building country
ownership and political will.
Can Low Income Countries Afford Basic Social
Protection? (June 2005)
Economic experts from the International Labour Organization presented
a model study showing it is feasible for low-income countries to offer basic
social protection to their population. Using case studies from Sub-Saharan
Africa, the paper illustrates that universal pensions, basic health care and
education would only cost a small fraction of a poor country’s
GDP
. The authors state that universal social pensions have proven to be very
effective in eradicating extreme poverty among those most vulnerable,
including older persons.
Social Security: A
New Consensus (2001)
The International Labor Organization published this report following the
Committee on Social Security’s meeting. The committee defined a vision of
social security which would guide the work of the Organization in the years
to come. It also looked at the various actors involved in income security
and social protection, ranging from the family and local solidarity networks
to the international community. Concerning the challenge of an aging
population, the group revealed that financing social security faces
difficulties. World Bank advocacy of privatization and pre-funding of
pensions brought on new problems, such as higher management and transitional
costs. They concluded that global access to social security softens the
“old age crisis.” They also suggested that partnerships with private
financial institutions could be useful, for example, in the case of
implementing micro-insurance.
-----------
Reports
World: Tackling Insecurity in Old Age: The Challenge of Universal Pensions (September 2007)
“Deteriorating health and declining incomes threaten the welfare and security of many people as they enter old age.” This UN report
reviews both rich and poor countries, suggests that a minimal universal social pension can provide a floor below which
no older person could fall. It also points out that such pensions form the “basis for a more comprehensive pension system which may consist of a mixture of public initiatives adapted in accordance with existing country practices, financial circumstances and equity considerations.”
World:
World Economic and Social Survey 2007
(June 19, 2007)
(PDF format, 212 p)
Authors of the World Economic and Social Survey say that governments should raise the participatory rate of the women and older workers in the labor force in order to offset the potential challenges that might arise with an aging population. They also highlight initiatives undertaken since the adoption of the Madrid International Plan of Action on Ageing in 2002. The survey particularly emphasizes the affordability of universal social pensions, even for poor countries. Pensions as little as one dollar a day would lead to considerable reduction of old age poverty in developing countries. This would guarantee the absence of extreme poverty in old age when the population over 60 is expected to increase from 670 in 2005 to two billion in 2050.
Asia
Pacific: Expert Group Meeting on the Regional Preparations for the Global Review of Madrid International Plan of Action on Ageing (March 27-29, 2007)
Five years after the Madrid Plan on Aging signed by 159 countries, HelpAge
International conducted a review of implementation of the Plan focusing on two
countries of Asia: Bangladesh and Vietnam. Two aspects of old age that are
particularly relevant in Asia are: income security in old age and access to and
quality of healthcare. The report also focuses on a project with the government of Nepal to analyze the impact of an Old Age Allowance.
World:
Social Protection – an Effective Tool to Fight Inter- generational Poverty
(February 2007)
This article by Global Action on Aging’s Alischa Kugel and Jennifer Nazareno,
gives an overview of the effective use of social cash transfers in combating
intergenerational poverty. The article also recaps presentations given by
experts on the issue during a UN Roundtable at the Commission for Social
Development and discusses challenges that must be overcome.
World:
Achieving Decent Work for All Ages
(February 9, 2007)
This HelpAge International presentation at the UN Commission for Social
Development makes clear that social protection is the key to realizing the
Millennium Development Goals and satisfies the commitments of the 1995
Copenhagen Summit for Social Development. The UN community wants to “place
people at the centre of development and ensure that economic investment is
balanced with social policies.” In the least developed countries, 71% of older
men are still in the labor force, holding informal sector jobs or working in
dangerous worksites. The Decent Work Agenda speaks up for a universal pension
system. Indeed older people living in poor countries are highly concerned,
especially because they need income provision for retirement and as carers of
HIV/AIDS affected families.
World: Update on Trends in
Income Security in Old Age (February 7-9, 2007)
This report by the International Labour Organization discusses the effects of aging on the population, in both
developed and developing countries. Developed countries, since they already
organized their system, expect to increase their
GDP
expenditure only from 23.4 % to 26.8%. However, this outcome results from
policy changes that push up employment rates and actual retirement ages and push
down benefit levels. In the low income countries, ILO suggests adoption of
non-contributory pensions (social pensions) to ensure an income to older people.
ILO has studied two kinds of universal basic pension: one paying a regular
amount of money to all men and women over a certain age and another that sets
the level of benefits relating to
GDP
per capita.
World:
Realizing Universal Rights to Social Protection. Briefing Paper (November 2006)
Grow Up Free From Poverty is a coalition that first targeted children. This NGO
coalition is now leading a “campaign for the extension and establishment of
social protection measures, specifically cash transfers.” Social pensions have
become a successful form of cash transfer, alongside family benefits or child
allowances. This paper studies the impact of social protection through an
intergenerational approach. The coalition states that “older women and men are
increasingly the primary caregivers of children made vulnerable by HIV/AIDS, war
and migration, [thus] poverty of older relatives will impact on the poverty of
the younger ones, and vice versa.” From a political point of view, social
protection is a human right developed in many international conventions; this
paper refers to them in an annex.
World: Why Social Pensions Are Needed Now (October 2006)
This Help Age International briefing paper describes the characteristics of
social pensions and how they contribute to the economic development of poor
countries. Governments that distribute social pensions act to reduce poverty
and to tackle HIV/AIDS. Indeed, older persons are often disproportionately
affected by poverty because they don’t receive a regular income. Social
pensions also support economic growth as well as social cohesion and
governance: they “should be regarded as an investment rather than
unproductive spending.”
Kenya: Poverty,
Old Age and Social Pensions in Kenya
(2006)
Although older persons represent a small percentage of
Kenya
’s population, poverty affects them disproportionably. This
International
Poverty
Center
report highlights the importance of pensions in combating old age poverty. While
only 3% of older
Kenyans report receiving a pension, poverty rates without this income would rise
17.1% for persons of 55 years and 14.6% for persons over 60 years. Examining the possibilities of expanding the current pension system, the authors discuss
non-contributory social pensions as well as universal pensions to all older
persons over 55 or 60.
Social Protection: The Role of Cash Transfers (June
2006)
In this publication, the International Poverty Center focuses on the importance
of cash transfers as part of social protection measures to combat poverty.
Authors discuss policy makers’ considerations, such as targeted vs. universal
delivery of the transfers, their long and short term effects, case studies on
universal income grants from Africa, new initiatives in Asia and conditional
cash transfer models in Latin America. Lastly, a bilateral donor representative
presents his view on cash transfers and details how donor countries and
developing countries can work together to provide more effective support to the
scheme.
World:
Universal Pensions for Developing Countries (May 2006)
Governments of New Zealand, Mauritius, Namibia, Botswana, Bolivia,
Nepal, Samoa, Brunei, Kosovo and Mexico City provide a basic pension to the
elderly with no test other than citizenship, residence and age. These
universal non-means-tested pensions automatically protect an entire
population, in a way that contributory, earnings related pensions never can.
However few countries implement this kind of pension. The World Bank opposes
such a system for reasons like: younger generations should have priority in
the social budget or universal pensions “crowd out” private transfers.
However, universal pensions are not a “costly luxury,” rather, the
report demonstrates that developing countries can afford this system.
World: Shaping the Future of Social Protection: Access, Financing and Solidarity
(April 2006)
This in-depth report highlights the outcome the of recent UN Economic
Commission on Latin America and the Caribbean (UNECLAC) conference in
Uruguay. Experts in this UN commission focus on
Latin America
’s current pension and health systems and their impact on impoverished
older persons. The document offers analyses of social protection programs in
the region, providing useful information on how Latin American nations are
addressing the needs of their aging population. The authors point out the
financial challenges governments face in implementing social programs and
give recommendations for possible solutions.
India: Bottom-up Evaluation of Non-Contributory Social Protection Policy for Rural
Labourers in India (October 2005)
The Chronic Poverty Research Centre based in the UK recently released
a report evaluating the effectiveness of non-contributory social protection
programs on the poverty levels of workers in rural India. The study points
out differences between effective implementation strategies and program
outcome. In the case of rural Indian workers, the study shows the
implementation of non-contributory social protection schemes increase the
power of local powerbrokers over rural workers. At the same time, social
protection plans tend to help reduce poverty levels of rural Indians.
Experts caution that government officials may try to influence outcome
indicators.
World: Age and Security: How Social Pension Can Deliver
Effective Aid To Poor Older People and Their Families (2004)
This HelpAge International report makes a strong case for providing universal
non-contributory pensions - "social pensions" - to older people in
developing countries. It describes how social pensions effectively target
aid, reducing the poverty of older people and the families they so often
support.
Africa: Non Contributory Pensions and Poverty: A
Comparative Study of
Brazil
and
South Africa
(2003)
A
comparative study of non-contributory pensions, published by Help Age
International, provides evidence of how non-contributory pension programs
affect the well-being and the security of older people and their families.
An international team of researchers studied non-contributory pension
programs in
Brazil
and
South
Africa
and
found that the programs had a positive effect on bringing households out of
poverty. This innovative program could help other developing countries in
the future.
Implementation
Each government that has a social pensions program uses a slightly different system to distribute benefits. Most nations give a monthly or bimonthly pension, ranging from $2 in Nepal, to about $130 in South Africa. Nepal and India provide the lowest pensions, whereas South Africa and Argentina provide the highest. Bolivia offers the “Bonosol,” a benefit of $225 a year. Some countries like Chile and Mexico combine their social pension schemes with food and health care programs. Although in absolute cash value social pensions are not worth a lot of money, they represent a significant source of income for poor older persons.
Africa
Botswana,
Ethiopia,
Lesotho, Mauritius, Namibia, South Africa, Uganda, Zambia
Malawi: Govt. To Introduce Social Pension for Elderly (September 26, 2008)
Malawi is introducing a social pension scheme for older persons. Announcing the scheme, Clement
Khembo, the Minister responsible for People with Disabilities and the Elderly, said, "Not all elderly people are struggling with life. In its initial stages, the scheme will target all those who are very poor to afford sustenance. Those in the rural areas, who have even no houses." The President of Malawi, Bingu
Mutharika, is also a strong supporter of improving the welfare of older persons.
Zambia: Government Discards the Elderly (September 20, 2007)
The author of this article calls on the Zambian government to step up its efforts to protect older persons. While Zambia provides pensions to formal sector workers, most people work in the informal sector and do not receive payments. Activists also
critizise the country’s free medical scheme for those 65 and older, saying that while the consultation is free, drugs are not. Senior citizen organizations are calling on the government to implement a universal social pension to help older persons cope with HIV/AIDS care-taking responsibilities and to provide for a decent old age.
Uganda: Poor Ugandans to Get Monthly Allowance (August 9, 2007)
Uganda, with the help of the UK’s
Department for International Development and aid organizations such as HelpAge
International, will start paying a monthly allowance of $10 to the country’s
“chronically” poor, often times older persons. Families whose household
include an older person will get an additional $6.00. The scheme, based on
similar models in countries such as Brazil and Mozambique, will particularly
help grandparents taking care of children whose parents have dies of HIV/AIDS.
Africa: Social Change Lags Behind Africa's Economic Growth (July 17, 2007)
The recently released 2006 State of the African Population report revealed that “half of Africa lives in extreme poverty and one-third lives in hunger.” While the economy is developing, few people benefit socially. This is due, in part, to a lack of education, inadequate investments in human capital, gender inequalities and youth marginalization, which keep people in chronic poverty. There are positive experiences. South Africa has about 12 million social security grant recipients, including older persons, children and the disabled. Experts from the government affirm that: “with the 100 percent take-up rate of those who qualify for grants, they are actually able to almost completely eradicate extreme poverty amongst children and older persons." Africa has another opportunity to seize: the 2010 FIFA World Cup South Africa that will provide a platform to highlight issues such as poverty.
Africa: Activists for the Aged Press for Greater Care, Pensions in Africa (February 19, 2007)
The growing number of senior citizens is an increasing pressure on African governments. Numerous organizations ask for the implementation of social pensions to help older persons as well as their families get out of poverty. According to Tavengwa Nhongo, regional representative for HelpAge International based in Nairobi, Kenya, social pensions are affordable even for the poorest countries. Research data found that only 1.5% of GDP is required. Those pensions reduce older people’s poverty by 94%. This article gives many examples of fruitful experiments to implement universal pensions, constitutional guarantees to protect the elderly or national social security systems.
South
Africa: Nest-Egg for All (February 16, 2007)
South Africa has a widespread social security system. However the old-age
pension (social pension) is only available to the very poor and is funded from
current budget revenues. The government is looking to create “a compulsory
earnings-related social security system that will include retirement benefits
for all citizens.” Indeed South Africa’s pension system is organized with a
first and a third pillar, namely a welfare-based old-age pension and private
savings. President Thabo Mbeki, during his State of the Nation address’
speech, stated that workers will soon be bound to contribute to a state fund,
which will provide universal retirement benefits.
Lesotho:
Lesotho Pension System Proves Sceptics Wrong (November 5, 2006)
The small country of Lesotho that is surrounded by South Africa has followed its
great neighbor’s example: the government has implemented an old-age pension.
For the past two years, all citizens over 70 years benefit from a monthly
pension of 150 maloti (R150). Despite the skepticism of the International
Monetary Fund that feared corruption, the government plans to distribute R150 to
more older persons. Lesotho can be proud about creating this pension that helps
some of the 56% inhabitants living on less than $2 per day (about 15 maloti).
Zambia:
African Governments Take Action on Social Protection (March 28, 2006)
HelpAge International highlights the importance of last week’s conference on
National Social Protection in Livingstone, Zambia. The governments of Ethiopia,
Kenya, Lesotho, Madagascar, Malawi, Mozambique, Namibia, Rwanda, South Africa,
Tanzania, Uganda, Zambia and Zimbabwe, plus UN agencies and development partners
gathered to assess the impact of social pensions. In a region afflicted by
extreme poverty and HIV/AIDS, 47 million older persons face terrible conditions.
Social pensions and cash transfers aim to mediate this situation and improve the
standard of living for older adults and their families. Government
representatives reaffirmed their promise to establish social protection programs
for older persons. For
further information and resources on Social Protection, please visit HelpAge
press release section.
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Latin America and the Caribbean
Argentina, Brazil,
Bolivia, Chile, Costa Rica,
Guatemala, Mexico, Uruguay, Venezuela
Bolivia: Evo Asks for an Increase in the Renta Dignidad (July 24, 2008)
(Article in Spanish)
The government has recently asked Congress to increase the amount of pension provided by Renta Dignidad to retirees and elderly with no other source of income. This increase, funded by the revenue resulting from the Direct Tax on Hydrocarbons, will help many of the nation’s elderly.
Bolivia-
Social Pensions in Bolivia (June 17, 2008)
(Article
in Spanish)
In January 2008, the government instituted la Renta Dignidad, a non-contributory
pension that provides Bolivians over 60 with Bs 200 a month. La Renta Dignidad,
which replaced the Bonosol—the country’s former social pension
plan--increased the amount of pension and lowered the minimum age of recipients.
As a result, 676,000 elderly are now receiving pensions as opposed to 489,000
under the Bonosol. The social pension is the only source of income to 50% of its
recipients and is used for necessities, mostly food and medications.
Bolivia:
Renta Dignidad (April 2008)
La Renta Dignidad, which is a non-contributory pension in Bolivia, is essential
to the survival of 29% of the population living there for under $1 per day.
Bolivia is the only country in Latin America with a non-contributory pension. La
Renta Dignidad decreased the eligibility age and increased the amount of pension
distributed in the country’s initial plan, the Bonosol. Many give credit to
the National Association of Older People for advocating to improve the social
pension and making older Bolivians’ lives much better. Now the Association is
working to implement non-contributory pensions all over Latin America.
Paraguay: The Elderly March Tomorrow in Search of a Social Pension and a Food Pension (September 30, 2007)
(Article in Spanish)
On the International Day of Older Persons, a group of elder Paraguay pensioners and their supporters will demonstrate and demand action to approve a law providing a social pension and a food pension to people over 60 years living without any income. The law will propose a social pension of no less than one fourth the minimum wage. The march will take place on October first and is organized by CAMA (Counsel of the Elderly in Asuncion)
Chile: Chamber of Deputies Approve Provisional Reform that Permits Banks to Enter AFP (August 29, 2007)
(Article in Spanish)
President Michelle Bachelet’s provisional legislation to improve the pension system and the condition of retired citizens was approved by the Chamber of Deputies. One of the highlights was the agreement to permit banks to enter the “Insuring Pension Funds Entity” (AFP). Another major accomplishment was the “Solidarity Pension” which establishes a basic pension of 75,000 pesos ($147) (known as a social pension) for those elderly citizens who are not otherwise eligible for a
pension. According to a government official, once the reform begins to take effect, 1.1 million Chileans will have new benefits, a minimum pension, assuring security and dignity.
Bolivia: Social
Pensions, Older People Were Cheated (June 28, 2007)
(Article in Spanish)
The writer describes how schemers cheat older people out of their social pensions in Bolivia. In one scam, persons carried fake identification papers and passed through the registration process and received the social pension. Other scam artists recruit old, poor and illiterate persons to apply for the social pension and rob them as soon as they receive the money. In another case, a daughter cheated her mother by forcing her to apply for the pension and then robbed her. Law officials are investigating to learn if there is an organized network involved in this terrible scam operation. Of course, this cheating and robbery undermines public confidence in the efficacy of the social pension administration system in Bolivia.
Bolivia: AFPs Cheat on Retired People. (May 17, 2007)
(Article in Spanish)
Bolivian retirees (people older than 65 years old), receive a social pension from the
AFPs, Bolivia's leading pension fund administrator, of 1800 bolivianos (USD225). Recently around 300 people in Bolivia went to the bank to get the payment and were told that another person already had claimed it. Retired people think that a company stole the data base from the
AFPs. Retirees asked the AFPs to replace the payment. AFPs denied any responsibility for the theft. Getting nowhere, the old people registered their claim with Human Rights organizations, with the Police and with the Public Ministry. Not a single person has yet received the payment. Most suspect that they will never get it.
Uruguay: A New Social Program for Older Persons Will Triple the Beneficiaries over the Previous Program (March 28, 2007)
(Article in Spanish)
In September, a new social program will reach out to include nearly one million more people who live in poverty. The previous Plan reached the poorest poor, while the new program
gives all poor families access to health, education, and jobs. The program’s old age cash allowance will now reach all those who are 65 and older, instead of 70 years of age.
Chile:
Chilean Leader Proposes Soc. Sec. Reform (December 15, 2006)
Speaking before a retirees’ organization, President Michelle Bachelet
announced a change in the pension system: she expects that one million of
people, generally without any coverage, would benefit from a non-contributory
pension, estimated at $141 per month. Mothers, particularly women who left the
workforce to raise their children, will receive an additional pension benefit.
President M. Bachelet said she wants to “guarantee the security of a dignified
old age.”
Argentina:
Extended Moratorium for Retirees (October 23, 2006)
(Article in Spanish)
In
Argentina, elderly people who do not meet the required number of employment
years for retirement are eligible for a plan that will allow them to receive
pension. Argentine President Néstor Kirchner postponed the moratorium for older
people to join this plan. This plan not only benefits the elderly, but also
those who were forced into retirement due to unemployment after 30 years of
registered employment.
Argentina:
Plans to Improve Retirement Plans (October 8, 2006)
(Article in Spanish)
In
light of
Argentina
’s economic crisis in the years 2001 and 2002, different companies, with the
help of consultants, came up with ideas of how to improve retirement plans. The
result is that three out of ten leading companies now have an optional
retirement plan in addition to governmental pension. Consultants predict that
this trend will contribute to the development of trust funds.
Chile:
Pension Reform to Combat Systemic Poverty (September 15, 2006)
In 20 years only half of the Chilean citizens will receive more than the minimum
pension. Mrs. Bachelet’s government will submit a bill to Congress by December
to strengthen solidarity pensions and to reduce gender inequalities. However,
some trade unions oppose the government’s maintaining the Pinochet system that
requires an individual capitalization system. This privatized system, the first
in Latin America, has failed to provide sufficient income for most seniors and
soaks up a lot of revenue in operating costs.
Mexico
A Pre-Election Quarantine Takes Effect (May 22, 2006)
(Article in Spanish)
To prevent public officers’ misuse of social programs during the last month of
the presidential campaign, the Mexican Electoral Institute has put a quarantine
into effect prohibiting all governmental agencies and public authorities from
making any attempt to influence citizens’ voting preference. In practice, this
decree means that some institutions will have to stop some of their social
programs. In Tamaulipas, for instance, the office for the Development of Older
Persons will no longer distribute a weekly food basket to a group of extremely
impoverished older persons. Presidential candidates have strongly focused their
campaigns on a theme of social development and helping vulnerable groups,
especially older persons.
Venezuela: Government Makes Late
Payment to Older Persons Enrolled in Social Pension Program (May 17, 2006)
(Article in Spanish)
The Venezuelan government started the late payment of its monthly social benefit
to older persons last week. Apparently, there were problems regarding the
transfer of funds from the Treasury to the National Institute of Social
Services. Older persons were unable to receive their pension in April. The
government has guaranteed to solve the problems the program faces, and has also
announced that it will increase the amount of the benefit.
Bolivia:
The Government Guarantees the Payment of the Bonosol (May 16, 2006)
(Article in Spanish)
The Bolivian government recently nationalized the gas industry. Since 1998,
Bolivia has provided—using the tax revenues from this industry—older
persons, above 65, with an annual social pension of $ 225. Many fear that the
government’s bold measure of taking over the gas industry will jeopardize the
Bonosol. However, the president has assured Bolivians that the government will
continue offering this pension. The possible change, though, might be that the
Bonosol will no longer be universal, and available to all persons over 65 years,
instead it may be given to only the poorest. Means testing is expensive since
the country must set up a bureaucracy to verify who is "poor."
Mexico:
390,000 Older Adults Benefit from Universal Pensions in Mexico City (April 2,
2006)
(Article in Spanish)
A few years ago, the government of Mexico City pioneered with a program directed
to help the elderly. Every older adult —above 65—has the right to a monthly
pension of $70 as well as access to free medical check-ups and prescribed drugs.
This month the number of beneficiaries reached 390, 000. Local authorities, in
an effort to fight back strong criticism from the opposition, stressed that the
social pension scheme is not jeopardizing the government’s finances.
Supporters of the universal pension model argue that Mexico has the means to
implement social pensions at a national level. Although there are a number of
programs that reach older persons, most older Mexicans do not have a pension and
live in poverty.
Uruguay:
Pension Systems in Latin America and the Caribbean Need to Be Reformed, States
ECLAC (UN Economic Commission for Latin America and the Caribbean) (March 23,
2006)
(Article in Spanish)
The ECLAC’s aging focal group presented a document on the future of social
protection during a recent ECLAC session meeting in Montevideo, Uruguay. Latin
America and the Caribbean urgently need income support in old age for their
citizens. Only 4 out of 10 older persons in the region currently receive a
pension. Many workers, especially women, work in the informal sector or in
temporary jobs and, therefore, will not have access to benefits with the current
system. Furthermore, ECLAC stresses the importance of expanding pension coverage
and creating a system to address the needs of a rapidly increasing aging
population.
Guatemala:
Constitutional Court Approves Law on Social Pensions for Older Adults (March 15,
2006)
(Article in Spanish)
The Guatemalan Constitutional Court has ordered the publication of the new
legislation on the Program of Economic Support for Older Adults. The legislation
enables persons above 65—who are not enrolled in a pension plan--to claim a
social benefit of $65 a month. Much controversy arose around this bill because
Congress passed the legislation early this year without executive approval. The
bill did not receive executive power support because the government lacks the
necessary resources to implement the program. María Antonia Bonilla, Minister
of Finances, states that there is not enough money in the treasury; however, the
government might make an effort to redistribute resources and modify its budget.
Chile: Bachelet Initiates Presidency Readjusting Pensions (March 13, 2006)
(Article in Spanish)
The new Chilean president, Michelle Bachelet, sees readjusting pensions as her
top priority. The government will raise the minimum pension amount (now about
$76 per month) to stabilize the retirees’ economic situation. More than a
million older Chileans will benefit from this measure. Other social projects
aimed at the elderly and persons with disabilities include the implementation of
a universal pension system. Bachelet’s social agenda is based on quick,
cost-effective actions to tackle poverty and create high impact reforms.
Mexico:
Universal Pensions Would Be Financially Possible, Says Study (March 1, 2006)
(Article in Spanish)
The Center for Research and Faculty of Economics (Centro de Investigación y
Docencia Económicas) in Mexico says in a recent study that a system of
universal pensions would be both sensible and financially possible. With the
number of older people increasing sharply and the levels of poverty among the
elderly rising, universal pensions are now very much needed. If managed
properly, the cost of such a program will only be about 0.35% of the national
budget. Mexico has a great gap between the poor and the rich according to age,
where 70% of older adults live in poverty. A universal pension system would help
reduce older persons’ precarious conditions in a cost-effective manner.
Mexico:
Fox Announced Social Pensions for the Elderly (January 7, 2006)
(Article in Spanish)
President Fox announced that this January the government will start its monthly
payment of social pensions to the elderly affiliated to the program “Oportunidades.”
“Oportunidades” is a social development project based on the premise of
families saving for the future. There are currently 200,000 families enrolled in
this program. The federal government will reward each family with a bonus that
will double their savings. Fox stated that the program will target particularly
rural and indigenous populated areas, promoting health, education, housing and
pension benefits as fundamental elements for aging with dignity.
Back to Top
Asia/Pacific
Bangladesh,
China, India,
Nepal,
South Korea, Thailand, Vietnam
India: Social Security to Become a Right (August 22, 2008)
The Union Cabinet has approved the Unorganized Sector Workers’ Social Security Bill. People working in the unorganized sector will gain increased rights. The bill will provide pension rights for the aged and insurance for accidental death.
China: New Pension Insurance Scheme in Rural China Benefits Older People (August
4, 2008)
Here’s more information about the new Rural Social Pension Insurance Program
that China is putting in place. The program is one of the government’s first
attempts to decrease poverty among the nation’s elderly. It provides greater
income security to its beneficiaries and decreases dependency. Although this
insurance pension has helped many older persons, Help Age International
maintains that improvements still need to be made, including an increase in the
amount of pension distributed.
Thailand: Pro-Aging Strategies for Thai Elders (January 23, 2008)
(Article in Chinese)
Adult children are abandoning an increasing number of elders in Thailand. The incidence of elders staying alone has risen by 7.1%. The retirement age may be raised from 60 to 65 years. In 1999, a social pension system was introduced and both employers and employees contribute 3% of the salary as premiums. Poor elders without pensions will get 300 Thai Baht a month for living assistance. In 2005, free dentures were given to 80,000 elders. Beginning in 2007, elders holding special assistance passes are receiving free medical treatment at 1,000 designated hospitals.
India: Social Pensions to Benefit Another 17,456 People in Himachal (August 10, 2007)
Himachal is a state in the north-west of India. The state government announced recently that 17,456 more people would benefit from social pensions. Namely in this region more than 200,000 older persons, widows and people with disability are eligible to receive a monthly pension.
China: China’s Social Security Fund Grows Steadily through Sound Investment (April 12, 2007)
(Article in Chinese)
On April 12, 2007 China’s Social Security Fund Management Committee announced that the Fund has 280 billion yuan and that investment of the Fund made a profit of 19.6 billion yuan, a nearly 10% profit rate, in the last year. Xiang Huaicheng, the Committee Chair, said that “we had formed a sound and reliable practice of investing the fund.” Experts believe that the fund should target low-risk investments with a reliable rate of return.
China:
Social Pension Funds Worth of RMB￥60M Looted Unlawfully by Local Former
Labor Relation Officials (March 10, 2006)
Recently, the National Audit Office uncovered information that local labor
relations officials had unlawfully looted the Honghe County’s social pension
funds worth of approximately RMB￥60 Million. They took the money for
their private use in YunNan Province. By the end of year 2003, only RMB￥1,300
thousand was left in the pension balance.
China:
Pressures in
China
Over the Issue of Aging (March 3, 2006)
(Article in Arabic)
In its Second National Conference on Old Age,
China
’s State Council called for the urgent establishment and implementation of a
pension system that will secure the basic needs of older persons. The state
council also proposed developing health, culture, education and physical
training programs related to older persons.
China
’s aging population now comprises 20% of the global aging population. The UN
expects
China
to remain the country with the largest number of older persons in the world for
the first half of the twenty-first century.
India:
India to Get Its Own Social Security System (January 22, 2006)
The government of India is currently working on a bill to promote the care,
maintenance and protection of senior citizens. The National Council for Older
Persons and several other NGO’s have helped the government develop its
program. The new system will offer services, such as an old age pension, minimum
level of financial security, old age home in each district and well-equipped
wards in each hospital.
South
Korea: Government Pushes New Social Security System for Elderly (May 24, 2005)
The South Korean Government and ruling Uri Party officials have decided
to set up long-term care insurance for senior citizens as early as 2007 in order
to address the welfare needs brought on by the growing elderly population.
Back to Top
Europe and Central Asia
Bulgaria, Croatia, Ireland, Kazakhstan, Moldova,
Russia,
Tajikistan
Croatia:
SDP: Social Pensions for All Over 65 (May 7, 2007)
The Social Democratic Party (SDP) presented its retirement strategy included in
its electoral program. They reproach the current system, the HDZ, for impoverishing
pensioners; more than a third of Croatians have pensions lower than 1,600 kuna
which is considered borderline poverty. SPD suggests equalizing everybody’s
pensions first. Then they would establish social pensions for all
people over 65 years old who do not have any income.
Bulgaria:
Economic and Social Development Pact Signed in Bulgaria (October 2, 2006)
Following the announcement of Bulgaria’s entry into the European Union in
January 2007, the national government signed an Economic and Social Development
Pact (ESDP). Bulgaria revealed its new political program to increase the
standard of living of citizens, as much as economic growth. As for older
persons, socially disadvantaged retirees will receive a social pension that will
be half of the minimum wage. That’s a significant forward step!
Russia:
A Line for the Poor (September 22, 2006)
(Article in Russia)
The line of people who want to receive monetary compensation instead of social
benefits grows every minute. The local offices of the Russian Pension Fund are
crowded from the early mornings. People cannot understand why they have to go
through this exhausting process one more time, when in June they already made
their choices. According to the legislature, a pensioner has to confirm his or
her choice every year. Members of Parliament, however, did not take into account
that it might be not that easy for older persons to stand in a line for several
hours, waiting until a social officer accepts their application once
again.
Russia: Social Benefits or Money? (September 21, 2006)
(Article in Russian)
Only
10 days are left for pensioners to decide whether they prefer to receive
monetary
compensation or they would like to enjoy social benefits such as free medication
and transportation. Those who prefer monetary compensation have to file an
application with the local division of the Pension Fund not later than October
1, 2006. It seems, however, that there is no right choice: the prices for the
medication increase every day, so that whatever money a pensioner gets, will be
wasted because of inflation; and those who do not travel every day do not need
free transportation benefits.
Ireland:
Standard Scheme Expected to Result in Higher Pensions for Thousands (June 9,
2006)
The Irish legislative body approved a new social welfare law reform and pensions
act. A new pension framework will take effect September 2006 and will combine
all non-contributory payments for people 66 years of age and older into one
standard pension scheme. The government expects this reform to result in 34,000
pensioners receiving higher pensions.
Russia:
Social Pensions Will Go Beyond the Minimum Living Wage (April 1, 2006)
(Article in Russian)
According to the Pension Fund of the Russian Federation, social pensions
will reach and even go beyond the level of the minimum living wage by 2008. The
amount of the social pension payment in Russia has increased by 8.3% starting
April 1, 2006. Gennady Batanov, head of the Pension Fund, predicts the social
pension benefits will increase to the level of the minimum living wage in the
near future.
Kazakhstan:
Citizens to Be Excluded from the Social Protection Program (March 31, 2006)
(Article in Russian)
The Minister of Labor and Social Justice Guhlzhana Karagusova announced that the
government of Kazakhstan could exclude certain beneficiaries from the social
pension program in ten years. However, she stressed that these changes will only
affect persons who acquired citizenship fewer than 10-15 years before reaching
the pension age. Kazakhstan is one of the few countries of the former Soviet
block providing social pension benefits to all older persons who are not
eligible for the labor pension. The Minister says that such changes are
necessary to prevent the influx of migrants to Kazakhstan from neighboring
countries in the future.
Back to Top
Middle-East and North Africa
United Arab Emirates
UAE: Social Care and State Responsibility
(February 1, 2006)
Social Security is an international principle guaranteed by international
covenants. The State honors this principle for the sake of protecting vulnerable
groups in society. That is why the UAE has decided to increase the level of
monthly social assistance benefiting old people. This only confirms that the UAE
leadership has been assessing the needs of those entitled to such extra
benefits, especially the old, so that they can meet their living costs.
Back to Top
World
World: Pensions Key to Meeting MDG Targets (July 9, 2007)
According to the OECD, old-age poverty would be 50% higher in developed countries without the existing appropriate pension system and other cash transfers. That is why social pensions are obvious instruments to fight poverty in developing countries. Such social pensions would not be a burden on poor countries’ economy: the UN estimates that “a basic universal pension to all over 60s equivalent to US$1 a day would cost less than 1% of GDP in 66 out of 100 developing countries.” Southern Africa is leading the process to achieve the Millennium Development Goals (reducing poverty, gender inequalities, hunger, etc.) since Botswana, Lesotho, Mauritius and South Africa all have a social pension scheme.
UK: Pensions not Poverty (May 2007)
Based in the United Kingdom, Help the Aged and HelpAge International launched the “pensions not poverty” campaign to raise awareness of older persons’ right to a social pension. The campaign calls on UK citizens to ask their Government to “put social pensions at the top of the international agenda and to ensure social pensions are a vital part of all relevant aid, development and debt-relief initiatives.”
Back to Top
HIV/AIDS
Social
pensions also impact whole families.
Social pensions keep the vital intergenerational link alive. With such pensions, older people can help provide for themselves and their families. Since the current “breadwinner” generation can be disabled or killed by HIV/AIDS, many children lose their parents, becoming orphaned. In such cases, older people must care for them. Often lacking food or other resources, older persons look to social pensions to buy food and – sometimes – education for these children. Social pensions also help those who suffer from HIV/AIDS who must eat some food in order to make their free retroviral drugs work.
 Social Pensions: South Africa: South African Families Coping with AIDS (August 20, 2007)
A US study from Professor Enid Schatz, University of Missouri-Columbia, showed the positive impact of “older generation's government pensions.” Many families in South Africa have to confront the death of their primary income earners because of HIV/AIDS, since the pandemic affects first the middle generation. Those social pensions, widely implemented in South Africa, help to maintain an entire household. The study gives the example of an elderly woman and her husband who support 12 people.
Social
Pensions: World: UN Offers Support but No Cash for Older Carers (8 June,
2006)
Member states adopted a new UN Political Declaration on HIV/AIDS on
June 2, 2006
. The Declaration commits governments to provide support and
rehabilitation to older people, particularly in their role as caregivers.
Although HelpAge International appreciates this commitment, the
organization is concerned that the Declaration contains weak human rights
provisions as “it does not acknowledge older people as a vulnerable
group with specific needs, and fails to set specific targets towards
achieving universal access to treatment by 2010,“ says Jo Maher, HelpAge
International’s HIV/AIDS Coordinator.
Help
Age International: Making Cash Count: Lessons from Cash Transfer Schemes in East and Southern Africa for Supporting the Most Vulnerable Children and Households (November 2005)
This study from Help Age International and Save the Children
elucidates the problem of poverty among children in southern and eastern
Africa and how it affects the elderly in their society. Even though
Botswana
and
Lesotho
are rich and poor countries (respectively), they both have non-contributory
social pensions. Many of the adult children of the elderly have passed away
because of AIDS resulting in the elderly caring for the grandchildren.
Grandparents are the most common carers of orphan children even though there
is extended family. Because grandparents do not have the funding to support
their grandchildren, many are living in poverty. That's why this study calls
for “unconditional cash transfers” to promote a ‘progressive’ social
protection agenda. Social protection is important because it includes such a
broad range of programs like pensions, family allowances or child benefits,
school feeding programs, and health insurance. The childhood poverty problem
for the present generation will also lead to poverty for the next generation
unless some changes are made to interrupt the poverty cycle.
Events
United Nations International Forum on the Eradication of Poverty
(November 15-16, 2006)
To mark the end of the first UN Decade for the
Eradication of Poverty, the UN organized an international forum from
November 15 to 16. The forum addressed key developments in policy and
practice over the past ten years and identified future challenges.
See the report by GAA Program Coordinator Alischa Kugel:
United
Nations: Report on the UN International Forum on the Eradication of Poverty
(November 2006)
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Access
the Presentations
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Intergenerational Poverty
|
Ppt
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|
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- Jo Maher, HIV & AIDS
coordinator, Help Age
International
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Tackling Poverty with Social Transfers to Vulnerable
Groups: Evidence from Africa
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Ppt
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- Professor Michael Samson, Director of
Research at the EPRI
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Poverty, Social Security and Human Rights. Lessons
from OECD Experience
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Ppt
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- Professor Peter Townsend, London
School of Economics
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Mainstreaming Decent Work into Poverty Reduction
Strategies
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Ppt
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- Professor Martha Chen, Harvard University, WIEGO
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Social Protection Initiatives for Children, Women and Families: An Analysis of Recent Experiences (October 30-31,
2006)
The panelists described how older persons (and others)
benefit from income support. UNICEF
and the New
School sponsored the social
protection event last week.
Intern Jenn Nazareno attended for GAA and
selected these articles that refer directly or indirectly to older persons.
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Access
the Presentations
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Who are the Vulnerable Children? Exploring the
Implications of Different Criteria for Determining Eligibility for
Program Assistance
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Pdf
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- Katie
Schenk, Lewis Ndhlovu, Stephen Tembo, Andson Nsune, Chozi Nkhata,
RAPIDS
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Social
Protection Schemes in West and Central Africa: A Proposal for
Renewal
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Pdf
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Sidya Ould El Hadj and Medou Diakhate
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The Malawi Social Cash Transfer Pilot Scheme,
Preliminary Lessons Learned
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Pdf
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- Bernd Schubert, Mayke Huijbregts
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Social
Protection for Children and their Families: A Global Overview
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Pdf
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- Sheila
B. Kamerman and Shirley Gatenio Gabel
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Targeting
Efficiency and Poverty Reduction Effects of Means-Tested and
Universal Child Benefits in Russia
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Pdf
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- Franziska Gassmann and Geranda Notten
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Links
Grow Up Free From Poverty Coalition
Over
24 NGOs and faith groups come together to build in the Grow Up Coalition.
Social protection, including old age cash transfers lie at the heart
of the Coalition's advocacy campaign to eradicate poverty. This
page provides resources on the topic.
HelpAge International: Social Protection
This rich resource provides background
information as well as case and country studies on the effectiveness of social
pensions.
International
Labour Organization: Social Security Department: Pensions
This page provides an overview
on the effectiveness and affordability of social pensions.
International Labour Organization: Social
Security Policy and Development Branch
The ILO's Social Security and Development Brach provides
information on the Campaign for Social Security and Coverage for All as well
as its Step Programme, which provides strategies and tools against social
exclusion and poverty to policy makers.
International
Poverty Center: Cash Transfers and Social Protection
The International Poverty Center is a joint project by the UN
Development Program and the Brazil government to foster South-South cooperation
on poverty research. This link highlights the International Poverty Center's
" publications on cash transfers and includes other important research papers, evaluation reports and interviews on the topic from multilateral organizations, NGOs, governments and practitioners."
UNICEF:
Policy Analyses
This
web-page provides links to UNICEF's work on social protection. It includes
articles and reports on the importance of social protection in fighting intergenerational
poverty.
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