Non-contributory pensions and social protection

This research paper critically examines the issue of non-contributory pension programmes. The researchers explore the impact, usefulness and sustainability of cash transfers for the old in various countries in Latin America and Africa. In doing so, the paper examines their effect on poverty, vulnerability of old people, and household investment on human capital in developing countries.

The paper also explores other issues surrounding non-contributory pensions, including the potential impacts of cash transfers on the economic activity of older people and their households, issues surrounding the financing and administering of cash transfer programmes, as well as alternatives to non-contributory old age pensions.

The paper highlights and explores several advantages of non-contributory pensions for the elderly in developing countries, including the following:

• it may increase the flexibility of households structures with elderly people to respond to vulnerability and opportunity
• there is research that indicates that access to non-contributory pensions can improve the health status of young children, by improving their nutrition and access to drugs and health care
• access to pension benefits may also improve the position of older people within their households
• for elderly women, who are sometimes disadvantaged by their gender and age, having an independent source of income may increase the power and status within a household
• non-contributory pensions can increase the capacity of households to effectively care for elders
• research from South Africa gives evidence to the fact that older people who have access to non-contributory state pensions have a much better health status than other household members, controlling for age, sex and other factors, when the pensioner did not pool their resources with the rest of the household.

[adapted from authors]