Considerations on the financial situation of Argentine pensions system

Abstract

The financial situation of pensions systems is a cause for concern in the public debate, both in terms of its impacts in the long term, given the expected evolution of demographic variables, and in the analysis of macroeconomic evolution in the present, given the scale that observes the pensions expenditure. Therefore, the present work examines the resources and expenditures linked to the pension sistem, as well as the contextual elements that allow characterizing its financial situation. In this case, it is noted that the Argentinean pensions system expresses numerous tensions and inequities, also in a situation where a practically universal passive coverage has been achieved. In the last 5 years, the difference between the resources allocated to its financing and its expenditure has been deepened, in a context of stagnation or reduction of material production and deterioration of real wages. Similarly, various economic and financial results associated with the wide heterogeneity of existing benefits and programs are determined and analyzed, which helps to identify possibilities for intervention to reduce inequities.