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Savings as a Complement to the Retirement System


A report published by the Inter-American Development Bank (IDB) shows that Latin America is aging faster than other continents. By 2050, one in five people will be older than 65. Not only will more people be retired, they will also live longer

If we add to this equation that the birth rate is falling, it results in a population with the highest aging rate of the planet. Today there is an average of nine workers to support a retiree, in 2050 there will only be three workers to support him or her.

One of the possible solutions is to increase the size of the economy, and one of the ways to make a sustained effort to increase the presence of women in the labour market. According to a study by McKinsey, closing the gender gap in Latin America would generate by 2025 an additional GDP of 2.6 trillion. Greater economic activity generates greater contribution capacity to the social security system, which improves the equation for the retirement system. Women have a higher life expectancy than men, spending an average of 5 more years in this system. Financial education, especially in low-income sectors, is one of the most important challenges that governments should have in relation to the issue of female inclusion and its contribution to the economy of a country.



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