Elderly Caribbean workforce to rise due to lack of pensions

A new study by two United Nations agencies has found that more than half of older persons in Latin America and the Caribbean do not receive a pension from a contributing system.

In the joint publication released by the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labor Organization (ILO), the lack of income from a contributory pension system in more than half of all men, and above all in women, aged 60 or over, is the main factor for remaining active in the labour market.

Consequently, the report Employment Situation in Latin America and the Caribbean, now in its 18th edition, projects that the proportion of people aged 60 or older in the workforce will rise from the 2015 levels of 7.5 per cent to 15 per cent by 2050.

"This is due, above all, to the ageing of the population and, to a lesser degree, a moderate increase in older adults' labour participation," ECLAC said.

Despite recent advances in employment formalisation and the expansion of contributory pension systems, according to data from eight countries in the region, an average 57.7 per cent of people between 65 and 69 years of age, and 51.8 per cent of people 70 or older, still do not receive a pension from a contributory system, with even higher rates seen for women.

"This situation forces many older people to work," the report stated.

In addition, the study shows that a high proportion of employed older adults work in the agricultural sector, where pension system coverage tends to be low.

-AP