Thursday, 2 October 2014

In sub-Saharan Africa, only One in Five Older Persons Receives an Old-Age Pension


In sub-Saharan Africa, about 16.9 per cent of older persons receive an old-age pension which would provide him or her with a certain level of income security during old age, says a new report by the International Labour Organization (ILO).
Effective coverage ratios are around 5.9 per cent of the working-age population in sub-Saharan Africa and owing to the high proportion of informal employment in sub-Saharan Africa, only 8.4 per cent of the labour force contributes to pension insurance and earns rights to a contributory pension.
As a result, income in security remains the trend while older men and women must keep working as long as they can - often in poorly paid, precarious conditions.
The ILO study "Social Protection for older persons: Key policy trends and statistics" (http://www.ilo.org/global/publications/WCMS_310211/lang--en/index.htm) shows that low-income countries have been expanding pension coverage through a mix of contributory and non-contributory, tax-financed social pensions.
Most developing countries combine contributory systems with a minimum social pension to older persons without a contributory pension (e.g. Lesotho), other countries provide a social pension to all (e.g. Botswana) and some other choose gradual and progressive realization (e.g. South Africa).
The Older Persons' Grant in South Africa, for example, although means-tested, effectively covers the majority of older people in the country and effectively prevents the recipients and their families from falling into poverty.
Increasing social security contributions/revenues is a major concern in countries like LesothoNamibia and South Africa. However, public non-health social protection expenditure for older persons yet accounts for only 1.3 per cent of GDP in Africa, where the share of older persons in the total population is significantly lower.
TNS 24KuanRap-141001 30FurigayJof-4882179 30FurigayJof

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