For most Latin Americans, the most effective way to ensure an income in old age is through pension systems. They work differently in each country, but for the average citizen they represent their main source of livelihood in the last stage of their life. However, despite their importance, most people do not know how they work, or because of their design, many of them are at risk of not being sustainable in the long term. "Saving is a very difficult thing....
By Waldo Andres Tapia Troncoso & Daniel Gamboa Rinckoar Pension systems are fundamental pillars of both present and future well-being for populations in any society. But what exactly are they, and how do they work in Latin America and the Caribbean? In this article, we break down the "ABCs"—the essential basics you need to understand pension systems in the region. We also provide a guide to their structure, how they function, and the challenges they face in the Latin American and...
“Latin America’s Private Markets—Particularly in Private Equity, Venture Capital, and Infrastructure—Are Entering a New Phase of Maturity. According to a report by J.P. Morgan Private Bank, Latin America is no longer seen merely as a source of isolated opportunities but as a structurally relevant market. Although capital flows have decreased compared to the peaks of 2021, the resilience of funds and institutional consolidation are strengthening the foundation of the investment ecosystem. The pandemic was a transformative catalyst. During those years,...
Uruguay is experiencing one of the most significant demographic transformations in Latin America, driven by a declining birthrate and an aging population. According to projections from the National Institute of Statistics, the country's total fertility rate dropped to 1.27 children per woman in 2023 and is expected to fall to 1.20 by the end of this year -- well below the replacement-level threshold of 2.1. The population, which peaked at 3.51 million people in 2020, is projected to decline steadily, falling...
By Stella M. Hartinger, Yasna K. Palmeiro-Silva, Camila Llerena-Cayo, Luciana Blanco-Villafuerte, Luis E. Escobar, Avriel Diaz, Juliana Helo Sarmiento, Andrés G. Lescano, Oscar Melo, David Rojas-Rueda, Bruno Takahashi, Max Callaghan, Francisco Chesini, Shouro Dasgupta, Carolina Gil Posse, Nelson Gouveia, Aline Martins de Carvalho, Zaray Miranda-Chacón, Nahid Mohajeri, Chrissie Pantoja, Elizabeth J. Z. Robinson, Maria Fernanda Salas, Raquel Santiago, Enzo Sauma, Mauricio Santos-Vega, Daniel Scamman, Milena Sergeeva, Tatiana Souza de Camargo, Cecilia Sorensen, Juan D. Umaña, Marisol Yglesias-González, Maria Walawender,...
According to a report by ETFGI, this year will be historic for the global ETF sector. By the end of August, the industry reached a new all-time high of $13.99 billion in assets under management, surpassing the previous record of $13.61 billion. In the emerging markets of Latin America, the trend is similar, driven by increased liquidity in the region. This is particularly evident among the largest pension funds, whose managers have long used ETFs as one of their preferred...
A recent report from the International Forum of Sovereign Wealth Funds investigated why Latin America lags behind other emerging markets in developing sovereign wealth funds beyond stabilization funds. “It is striking that, in Latin America today, there are 12 sovereign wealth funds, nearly all of which are traditional stabilization funds,” the report stated. Unlike most sovereign wealth funds, stabilization funds can be drawn on by governments to reduce the impact of volatile revenue on the economy. Because the assets in the funds might...
By International Social Security Association Ensuring adequate social security coverage for an ageing population is an important priority for governments and the global membership of the International Social Security Association (ISSA). Social pensions, also known as zero pillar or non-contributory pensions, complement contributory social insurance systems by providing a guaranteed source of income for people not adequately protected by other forms of social security. In doing so, they expand overall social protection and can be a powerful tool for combating...
Job opportunities exist in Latin America and the Caribbean, but the quality of employment remains a significant challenge. According to the Inter-American Development Bank (IDB), urgent measures are needed to ensure workers can escape poverty and enjoy social protection. Latin America and the Caribbean face a persistent issue: while many people are employed, the quality of those jobs leaves much to be desired. According to the 2024 Better Jobs Index from the Inter-American Development Bank (IDB), the region’s employment quality scores...
Ensuring adequate social security coverage for an ageing population is an important priority for governments and the global membership of the International Social Security Association (ISSA). Social pensions, also known as zero pillar or non-contributory pensions, complement contributory social insurance systems by providing a guaranteed source of income for people not adequately protected by other forms of social security. In doing so, they expand overall social protection and can be a powerful tool for combating old-age poverty, promoting social...
