Publication: Proposals for Improving Pension Systems in Latin America
Nuovalo is pleased to have contributed to the forthcoming book edited by David Tuesta and Parul Seth Khanna from pinBox Solutions that compiles a comprehensive collection of pension reform proposals in Latin America. The book will be presented in Washington DC during Pensions Week (June 20–22, 2023) hosted by the Inter-American Development Bank.
While each country is unique, they face similar challenges, including high labor market informality, demographic pressures, and other environmental factors such as the Covid-19 pandemic. These challenges highlight a number of structural weaknesses within the region’s pension systems and underscore the urgency to address them.
The book assembles thoughtful analysis from a cadre of pension experts on innovative approaches to improve the sustainability of the area’s national retirement systems. Some of these reform proposals address supply-side and demand-side issues in the working phase of the lifecycle that, to date, have limited the ability of people to create adequate pension savings pots, particularly in the informal sector of the population. Other proposals examine ways to improve pension payouts after retirement.
The 25-chapter compilation serves as a foundation for pension reform recommendations for Latin American and the Caribbean policy makers. It also develops a set of ten policy principles to strengthen retirement income adequacy within DC pension plans and to increase the level of trust among the population that pension providers have their best interest in mind.
Nuovalo co-founders Manuel García-Huitrón and Richard Fullmer contributed to the book by writing the chapter on longevity risk sharing as a tool for increasing the expected level of retirement income while simultaneously ensuring the system's sustainability for current and future generations.