• Gender and ageing

Gender and ageing

Change in the demographic composition of the population of Chile will likely exhaust traditional support systems of the elderly, and increase the relative importance of life-time savings, including social-security benefits. Thus, a policy approach that does not distort incentives to save for retirement becomes is important for the well being of the population as a whole.

In 1981 Chile replaced a mature government-run social security system that operated on a pay-as-you-go basis, with a privately managed system based on individual retirement accounts. Overall, the new system is more fiscally sustainable. At the same time, incentives towards using the social security system to channel savings towards retirement changed, particularly for married women.

This paper examines the levels of income per capita and living arrangements of the current elderly by sex, estimates their poverty rates, and compares these with the poverty rates for the younger population. In addition, it estimates future pension benefits for the current generation of contributors, by sex, in an effort to establish the likely effects of reform on the living standards of elderly men and women [author]

One of a series of background papers from: " Engendering Development - Through Gender Equality in Rights, Resources, and Voice", Policy Research Report, World Bank

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