Basic Old-Age Protection in Latin America: Noncontributory Pensions, Coverage Expansion Strategies, and Aging Patterns across Countries

Abstract

This article evaluates the patterns of old‐age protection in Latin America after recent expansions of basic pension coverage. It characterizes non-contributory pensions and related programs oriented to offer benefits to older adults lacking a record of formal employment and contributions. It is based on the systematic study of the design features of these policies in 14 Latin American countries. The article first discusses the need and opportunities for pension coverage expansion in Latin America, referring to pension coverage deficits and the window of opportunity for dealing with them in the past two decades. Second, it documents existing programs that offer cash benefits to older adults not qualifying for contributory pension benefits and identifies different strategies and policy instruments across countries. Finally, the article explores the cross‐country differences in living arrangements and retirement choices of older adults, indicators of the interactions between states, markets, and families in providing economic security in old age.