Eligibility for retirement and replacement rates in the Uruguayan multi-pillar pension system

Bibliographic Data

ID6166606
AuthorsGioia De Melo (Orange County Department of Education), Nicolás Castiñeiras, Analía Ardente (Ministero dell'Economia e delle Finanze), Oriana Montti (Ministero dell'Economia e delle Finanze), Braulio Zelko (Ministero dell'Economia e delle Finanze), Federico Araya
Year2019
Issue83
Pages105-144
Publication date2019-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueRevista Desarrollo y Sociedad (JOURNAL)
Journal identifiersISSN: 0120-3584 • E-ISSN: 1900-7760
PublisherUniversidad de los Andes (PUBLISHER • VE)
DOI10.13043/dys.83.3
OpenAlexW2972561094
LanguageEN
Citations received5
References cited6

We project the levels of eligibility and gross replacement rates of the pay-as-you-go and individual capitalization pillars in Uruguay. Based on a random sample of worker administrative records, we estimate years of contributions, formal income, and the evolution of the individual savings fund. Our results suggest that while 51% would be eligible for retirement at age 60, 28% would not be able to retire from the contributory system even at age seventy. We expect that 34% of those retiring at age 60 will receive a minimum pension while the replacement rate is estimated to be 52% relative to the previous year’s wage. We conclude that Uruguay still faces challenges regarding individuals’ density of contributions and amounts declared as both reduce eligibility levels and impose financial pressure on the pay-as-you-go pillar

Actuarial science · Business · Capitalization · Demographic economics · Economics · Labour economics · Pension · Pension system · Pillar · Retirement age · Sample (material · Wage · Engineering · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Retirement, Disability, and Employment · Finance

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