instability of the pension system in Latin American countries strength to millions of workers look for one informal way of employment to supplement your low income, after decades of work and exceeding retirement age.

From Mexico to Argentina.The region’s pension systems are characterized by structural and social difficulties which profoundly influence the quality of life of older people.

Mexico: half the work is unofficial

pension situation in Mexico reflects the complexity of the country where Informal work is part of the lives of almost half of the active population.

With such a minimum pension It barely exceeds 6,000 pesos per month.many Mexicans face the difficult decision to extend their working lives in order to provide fairly stable pensionconsidering that the minimum wage is 7,468 pesos..

Congress is currently evaluating a number of initiatives aimed at providing a 100% replacement rate for workers who entered their formal working life after 1997, with a cap of P17,000 per month.

He Senate of the Republic approved the creation last Thursday Social Pension Funda 40,000 million pesos fund that aims to have the government guarantee retirement with 100% of your final salary.

Argentina or the need to continue working for retirees

In a scenario of severe economic crisis and highest inflation rate in the world (287.9%), 65% of pensioners in Argentina receive a minimum pensionwhich in April was 171,217 pesos ($192), income that reached 241,000 pesos thanks to the supplement provided by Social Security due to the emergency.

This income represents 82% of Argentina’s legal minimum wage.which currently stands at 202,800 pesos ($232), puts many retirees in a situation of great economic vulnerability.

Despite legislative attempts to guarantee pensioners a minimum level of income, the reality is that Many workers are forced to continue working after reaching retirement age.

According to official data corresponding to the fourth quarter of 2023, of the 19 million employed (formally and informally) urban population in Argentina, 4.4% were over 65 years of age.

In Brazil, the number of working pensioners has doubled

WITH minimum pension barely exceeding minimum wageand an increase in the number of older people still working, The problem of ensuring a decent pension is obvious.

In Brazil, the minimum wage is R$1,412 (about 274 dollars), a value indicating the minimum pension and which 64% of pensioners receive..

Although there are no exact statistics on the number of pensioners working in the country, according to official data, in 2023 there were 7.4 million Brazilians aged 60 and over who continue to workwhich is double what it was ten years ago and 12% more than the previous year.

Chile is the inventor of individual capitalization

In Chile, the pension system was created in 1980.during the regime of Augusto Pinochet (1973-1990), has been criticized for not guarantee a decent pension. This system is based on individual capitalization, in which Employees pay 10% of their salary monthly to the administrators of the Pension Fund. (AFP).

However pensions received are insufficientwith the figures often being below the country’s minimum wage, which is 470,000 pesos (about 531 dollars).

This problem is exacerbated by the features The Chilean labor market is characterized by instability and low wages.

Lack of job stability gives rise to what is known as “gaps in forecasts” periods during which employees do not contribute and therefore do not save enough money for retirement.

Besides, Low wages limit their ability to save, especially women.who is facing wage discrimination and additional difficulties gain access to stable and well-paid work.

This situation leads to the fact that a significant part of people continue to work even after reaching retirement age.

EFE