• https://publications.iadb.org/en/users-manual-idb-plac-network-pension-indicators

Altamirano Montoya, Álvaro, et al. (2020). 2020 Pension Indicators for Latin America and the Caribbean. IDB Open Data. https://doi.org/10.60966/zvv8-n078

1. English

What is the Pension Indicators Dataset?

The 2020 Pension Indicators for Latin America and the Caribbean dataset provides a comprehensive overview of pension systems across the region.
It includes quantitative indicators on coverage, contributions, expenditures, and replacement rates, enabling cross-country comparisons of pension system design and sustainability.

What does this dataset measure?

This dataset tracks indicators that describe the structure and performance of public and private pension systems, including:

• Coverage rates — percentage of the labor force or elderly population receiving a pension.
• Contribution rates — employer and employee contributions as a share of wages.
• Pension expenditures — total and public spending as a share of GDP.
• Replacement rates — ratio of average pension benefits to pre-retirement income.
• System type — pay-as-you-go (PAYG), defined contribution, or mixed systems.

What is the purpose of this dataset?

The dataset supports research and policy analysis on social protection, fiscal sustainability, and aging demographics.
It helps governments and analysts assess the financial health of pension systems and the adequacy of retirement income across Latin America and the Caribbean.

Which countries are included?

The dataset covers most countries in Latin America and the Caribbean, with varying degrees of data availability depending on national reporting systems.
It provides comparable statistics for countries with both contributory and non-contributory pension programs.

What is the time period covered?

The dataset reflects data compiled and standardized for the year 2020, with selected historical series available for previous years where data continuity exists.
This enables trend analysis of pension coverage and spending.

How are the indicators defined and standardized?

Indicators are harmonized using methodologies used by international organizations, such as the Inter-American Development Bank (IDB), the OECD, and the ILO.
Where necessary, local-currency values are converted to percentages of GDP or per capita metrics to ensure regional comparability.

What are the main findings of the 2020 dataset?

• Coverage remains uneven — significant gaps persist between formal and informal workers.
• Pension spending increased as aging populations and social pension programs expanded.
• Non-contributory pensions played a growing role in reducing elderly poverty.
• Fiscal pressures are rising due to demographic change and low contribution densities.
• Some countries are moving toward mixed systems to balance sustainability and adequacy.

How can researchers use this dataset?

Researchers, policymakers, and analysts can use the dataset to:

• Evaluate the financial sustainability of pension systems.
• Analyze coverage trends among different population groups.
• Compare pension adequacy and replacement rates across countries.
• Support policy design for inclusive and resilient pension reforms.

How does this dataset relate to social protection and fiscal policy?

Pensions are a significant component of public expenditure and are central to discussions of social inclusion and fiscal sustainability.
The dataset provides a foundation for analyzing how pension systems interact with labor markets, income inequality, and public finances.

What are the dataset’s limitations?

• Data availability and definitions may vary between countries.
• Some indicators rely on administrative data that are not fully harmonized.
• The dataset focuses on pension design and spending, not individual benefit levels or microdata.

Who developed this dataset?

The dataset was compiled by the Inter-American Development Bank (IDB) as part of its efforts to improve regional social protection and fiscal policy data.
It draws from national social security institutions, labor ministries, and international databases.

How does the Instituto de Previsión Social (IPS) pension system work in Paraguay?

IPS operates as a contributory scheme funded by payroll contributions from employers and employees. It provides old‑age, disability, and survivor pensions. In 2018, only 35% of the economically active population contributed, reflecting limited coverage due to informality.

What are the retirement age and contribution year requirements for a full pension in Paraguay?

The dataset indicates a minimum retirement age of 60 years with at least 25 years of contributions for full pension eligibility.

What is the sustainability and financial solvency outlook of the Paraguayan Caja Fiscal?
The dataset highlights low contribution density (31%) and high informality (about 48% of female workers and 47% of male workers informal), which undermine sustainability. These factors contribute to projected actuarial deficits.

What voluntary pension contribution options are available for independent contractors in Paraguay?

Self‑employment is significant (about 25% of workers), but voluntary contribution mechanisms are limited. This explains the low overall coverage rates.

How are IPS pension funds invested and what is the typical annual return?

The dataset provides pension fund assets to GDP (3.3%), but does not detail investment portfolios or annual returns.

Why is the Paraguayan pension system facing a projected actuarial deficit?

High informality, low contribution density, and limited coverage mean fewer contributors relative to beneficiaries. In 2018, only 35% contributed, while 54% of seniors received pensions, creating imbalance.

The dataset provides replacement rates. For example, under defined benefit rules, male replacement rates range from 38% to 62% of pre‑retirement earnings, depending on income group and contribution density.

What is the process for claiming survivor or disability benefits under the IPS system?

The dataset confirms IPS provides survivor and disability pensions, but does not detail the administrative process.

What is the impact of inflation and currency fluctuations on fixed pension payments in Paraguay?

Inflation in 2020 was modest (about 2.9%), but the dataset does not specify indexing mechanisms. Fixed pensions are vulnerable to erosion if not adjusted.