World pensions: ranking of countries with the richest pensioners

China

Figure 1. Flag of China.

In 1995, the Chinese authorities launched a large-scale pension reform. If until the mid-90s only 5.4% of Chinese people applied for a pension, then in 2020 this number was already 60%. However, 40% of the population is still not covered by full social protection. The problem is related to the structure of China's pension system, which divides citizens into 2 categories:

• Civil servants and city residents. Men receive a pension from the age of 60, women - from 55 or 50 years, depending on the severity of work. For this category of citizens, the pension fund is formed from two sources: contributions from employers and employees’ own payments. The average pension is 2.3 thousand yuan (23 thousand rubles).
• Rural residents and low-income urban workers. They can only claim old-age benefits, which are paid by the regional budget. The minimum pension is 127 yuan (1.26 thousand rubles), which is not enough even to buy food.

At the same time, about 20% of Chinese people still cannot count on any of the pension programs.

Countries where there is no pension: an overview of states where pensioners are not paid

Elderly people in Russia often complain that they receive too low pensions from the state. You can even hear indignation that the government is trying to save money on the elderly.

They cite European countries as an example, where older people can not only live a comfortable old age with their pensions, but also travel to other countries.

But not all Russian pensioners know this fact: there are states on the planet where old people do not even know what a pension is. True, this does not apply to those who worked in government agencies.

Countries without pensions

It is necessary to pay attention to the fact that the pension program operates in a variety of countries. But who can count on such benefits is a completely different question. There are not very many such countries; you can count them on your fingers. The pension program there is poorly developed for several reasons:

• too high level of poverty;
• unofficial salaries take up a large percentage;
• very low life expectancy of the population;
• imperfection of state laws.

So it turns out that pensions there are available to only 10-15% of citizens, and the rest must take care of themselves. This applies to certain countries in both Asia and Africa.

Information about which countries do not have a pension program at all is considered partially outdated. Even in a state like Burundi, cash payments are still provided for both the elderly and the disabled. But such benefits are considered more formal there; they do not reach their destination.

We can state the following fact: it is simply impossible to find a state on the planet where pension payments are not provided in the 21st century.

But the pension program is only on paper, but in reality these are two big differences. And only two categories of citizens can count on such payments.

This usually applies to those who worked in government or law enforcement agencies. About which countries can we say that pensions there are more the exception rather than the norm?

Pension is not for all residents: which countries are we talking about?

Let's look at the TOP 3 countries where the pension program is so poorly developed that you can not take it into account at all. You can give two examples, and it will immediately become clear what the problem of pension provision for citizens is.

1. There are countries where 95% of citizens must work constantly, because the state does not provide them with any benefits upon reaching old age.
2. Can the payments of $3 a month that are offered to the elderly be considered a pension?

Only those pensioners who were military or police officers can count on help from the state. The rest can only rely on themselves or their working relatives.

China

Few people know that the pension program in the Middle Kingdom is very poorly developed. But this country is developing at a very fast pace, it competes even with the United States in the economic sphere, and has left Russia far behind.

Meanwhile, only those old people who have worked for decades in government agencies can count on benefits from the government.

And the second category of citizens receiving such assistance from the state are those elderly people who worked at large industrial enterprises.

Such payments are not provided for either rural residents or those living in small villages. There are no private pension funds in China; benefits for the elderly are paid by the state. Sometimes enterprises show such generosity, but only to those employees who have impressive experience. And yet it must be taken into account that there are practically no lonely old people here.

India

India is the country on the planet that has the second largest population after China. There are just over 1.3 billion inhabitants. Among all Asian countries, the level of social protection here is at a very low level, so only 12% of all older people receive a pension.

All other old people can exist only due to their previous savings, as well as thanks to the help of relatives. Benefits from the state are received only by those old people who worked in government agencies and retired at 60 years old. And even then, we are talking about 200 rupees.

Iraq and Pakistan

In Iraq and Pakistan, the pension program is almost the same. Only former civil servants can count on benefits from the state. Everyone else must replenish special savings funds themselves.

This must be done for at least 10 years. There is no other alternative provided here. Only Pakistani elders are given the opportunity to withdraw all the accumulated money at once.

Men are released from work at the age of 60, and women upon reaching the age of 65.

India

Figure 2. Indian flag.

India's social protection levels remain among the lowest in Asia. Only 12% of the population can count on receiving a pension in this country. Civil servants remain the most protected category: most of them can leave their jobs at 60 years old. At the same time, the pension amount often does not exceed 2 thousand rupees (the exchange rates of the Indian currency and the ruble are approximately equal).

Since 2004, the country has been undergoing large-scale social reform. It involves dividing the pension into 2 parts: voluntary contributions and mandatory taxes for employers. The reform has not produced the expected results: its consequences have so far affected only 1% of the labor force in India.

Read about plans for pension reform in Russia.

Thailand

Figure 3. Flag of Thailand.

Until the end of the 90s, only pensions for officials were in effect in Thailand. The situation changed in 1998 when the Social Security Act was passed. The government of the country proposed a two-tier payment system: separately for civil servants and employees of private companies.

Every company in Thailand is required to pay taxes for its employees. 3% of wages goes into the pension fund, and the state adds another 1% from the budget. At the same time, more than 40% of able-bodied citizens do not receive an official salary. These people will only be able to claim a minimum benefit, which is 700 baht (1.4 thousand rubles).

Although social support formally applies to all older people, in approximately 40% of cases it does not cover even basic needs.

Countries where there is no pension

Very often, modern pensioners speak quite negatively about the amount of their benefits received under the state pension system. However, there are several countries in which the payment of pensions by the state is not provided at all, and therefore citizens have to rely solely on their own strength.

When understanding which countries do not pay old-age pensions, it should be noted that there are not many such states at all. However, in many countries only a very limited number of people are entitled to at least the minimum benefit after reaching a certain age.

Countries without pensions in 2020:

• Thailand,
• India,
• Niger,
• Kenya,
• Suriname,
• Nigeria,
• Tanzania,
• Honduras,
• Iraq,
• Philippines,
• Vietnam,
• Pakistan,
• China.

Since there are several similar countries in the world, it is advisable to examine only the most striking examples illustrating local pension systems.

State pension contributions from GDP

Payments in China

Despite the fact that the Celestial Empire stands out extremely clearly for the state of its economy and its constantly growing budget, financial support for the population here is treated very negligently. Thus, only a few categories of citizens who previously worked in government agencies, as well as in large industrial enterprises located in the city, have the right to count on a pension here.

At the same time, villagers and residents of small settlements are not entitled to any payments. This somewhat compensates for the fact that the urban population in China is now more than 40%. For the state, the priority direction of development seems to be urbanization and moving away from the agrarian past, which explains the selective pension approach.

Pensions in China are paid by the state, while private pension funds do not exist here. In some cases, payments are made by the enterprises where citizens worked, but only on their own initiative and only if the employee has an impressive length of service.

The pension system in China has the following features:

• availability of impressive social benefits;
• the amount of the paid pension is about $400;
• Responsibilities for caring for an elderly citizen are assigned to relatives.

Despite the small amount of funds paid to citizens, the conditions of pensioners are significantly improved due to benefits that really help them in everyday life. They relate, first of all, to payments for utilities, which can be completely canceled, and travel on public transport. Pensioners will also receive special discounts in stores.

In addition, Chinese society respects tradition and does not tolerate disrespectful treatment of older people. As a result, worries about a pensioner fall on the shoulders of his children, grandchildren, as well as other relatives, and concerns about pensions fade into the background. This approach has led to the fact that there are practically no lonely old people in the state.

Additional information about pensions in China is in the video.

Vietnam, India and Philippines

These states, despite belonging to the Asian region, are strikingly different from China in terms of the pension system. In many of these states, pension payments are not provided at all, and in some, only government employees can count on pensions.

The most acceptable conditions for pensioners among these countries are observed in Vietnam.

According to local legislation, pension payments range from $50 to $150, and the country is particularly experiencing an aging population. In view of this, the state plans to increase the retirement age. Currently it is 60 years for men and 55 for women. In 2020, it is planned to increase it by 10 years, which will deprive most citizens of pensions.

In the Philippines, despite the enormous development of infrastructure and economy, the situation with pension payments is also very negative.

The small amount of payments, as well as the country’s programs for immigration of foreign pensioners, does not eliminate the problems with payments.

To address the severe shortage of funds, the Philippine president has offered to sell his yacht to continue paying pensions amid the crisis.

India stands out for its even more difficult living conditions for the elderly. Apart from the fact that old-age pensions are simply not provided for all citizens except government employees, the Indian pension system has a number of other interesting features.

It is advisable to include:

• the retirement age for both sexes is 60 years;
• care for older people is entrusted to families, as well as social programs and funds;
• Religious funds act as support for low-income pensioners.

At the moment, every Indian is forced to independently save for his old age, otherwise he risks being left without any means of subsistence.

However, the government of the country wants to radically change the current situation, and therefore is actively looking for investors to carry out the necessary reforms in the pension system.

This will allow India to pay citizens the necessary funds and cease to be one of the least attractive countries in the world for retirees.

Iraq, Nigeria, Pakistan, Niger, Suriname, Kenya

Iraq and Pakistan appear to be underdeveloped countries in the Middle East, which is reflected in their pension systems. First of all, only government employees can receive a pension, while other citizens are deprived of any benefits.

At the same time, Pakistani payments are distinguished by the possibility of receiving the entire accumulated amount at one time, which is a good option, given the small size of payments and low prices in the countries of the region. Otherwise, both systems are identical, as they imply:

• the age of pensioners is from 60 years for women and 65 for men;
• obligation to make contributions independently for 10 years;
• pension in the amount of $100 to $150 per month.

As in most previous cases, only civil servants, as well as citizens involved in a number of important areas for the state, such as oil production, are entitled to such payments. The rest are left without payments, and their relatives and children are responsible for supporting them, and families here are traditionally large.

Gambia

Figure 4. Flag of Gambia.

Pensions in The Gambia are paid from age 60. At the same time, only 2 categories of citizens can claim good social support in old age:

• Employees of budgetary organizations and commercial firms with government participation.
• Military and police.

See also: old age benefits for employees of the Ministry of Internal Affairs 2020.

Some workers employed in manufacturing or living in cities can also count on receiving pensions. At the same time, there are no old-age benefits for citizens who are employed in agriculture. People working illegally face the same problem. As a result, the pension system covers only 20% of Gambian citizens.

Ghana

Figure 5. Flag of Ghana.

The Ghana pension system is divided into two branches. One of them is the National Insurance and Social Protection Fund. He works with most categories of citizens, including private and public sector employees, farmers, traders and small business owners. The second branch, called CAP 30, deals with payments for the military, police and some government officials.

Both programs together cover the needs of 10% of the workforce. The remaining 90% of the Ghanaian population does not receive any support from the government in old age. The main reason for such a low level of social protection is the high share of the shadow economy. In addition, due to high inflation, money in government funds quickly depreciates.

In 2004, mass worker protests swept across the country. The Ghanaian authorities were forced to reform the National Fund. Under the new rules, men and women can retire at age 55. Despite some progress, the country's pension system is still in its infancy.

Which countries do not have old-age pensions, what alternatives exist?

Many Russian pensioners are dissatisfied with their pension provision, and a similar trend can be seen in most CIS countries. But it will be useful for them to know that there are many countries in the world where pensions are not provided at all.

Which countries in the world have no pensions at all?

The trend in the modern world has become an almost universal raising of the retirement age. This is relevant for both the EU countries and the CIS countries.

The increase in average life expectancy and the growing number of pensioners every year create a colossal burden on pension authorities, which forces the governments of these countries to revise the retirement age towards its increase.

But there are many countries in the world where there are practically no pensions. Let's name the TOP 10 of them. Some countries on this list seem to be economically developed, but at the end of a pensioner’s working career, poverty and oblivion await them.

Pakistan

In Pakistan, only civil servants can count on receiving a pension. The rest of the population is not familiar with pensions at all, since they never existed in Pakistan. A former government employee's pension is limited to a maximum of $150. A one-time payment of the entire pension benefit for 10 years at once is allowed, which is what most Pakistani pensioners use.

Iraq

Only Iraqi civil servants and former oil and gas workers are eligible to receive pensions. Both sexes retire at 60 in Iraq. The average pension here is $120. Families in Iraq are large, so it is assumed that the country's traditions oblige the younger generation of Iraqis to care for the older ones.

Thailand

The Kingdom of Thailand also saves on its pensioners. Only those who have served the state in one way or another can apply for a pension there. But they get between 400 and 500 dollars. The rest of the population cannot claim a pension. Civil servants in Thailand retire at age 55 after 15 years of service.

These Thai police officers will receive a pension in old age

Philippines

Despite the immigration program for foreign retirees, the Philippines does not pay pensions to its retired citizens at all. Only senior employees of the country's state apparatus can receive a pension. But for local pensioners there is a system of benefits that is somewhat reminiscent of the Chinese one.

I had the opportunity to visit and work in Tanzania. This large and densely populated (by African standards) country does not even know what pensions are.

The military and police, as well as some government employees, receive benefits that vaguely resemble a pension. After leaving work due to age, they are given a plot of land and an interest-free government loan to build a house.

Tanzanians say that this is how all the suburbs of the million-strong Dar es Salaam (the capital of Tanzania) were built. The profitability of such activities is high.

Taking into account free land and a loan received from the state, local pensioners invest 10 thousand dollars in building a house (taking into account the cheap labor force), and sell it for 30–40 thousand. But most Tanzanians work well into their old age.

Nigeria

This African country does not even know what pensions are. They have never been here, so Nigerian elders have to rely only on their own strength and the support of their children. There are no benefits for older people.

In Nigeria, protests against government social policies have long become the norm.

Honduras

This is the only country in Latin America where pensions are not provided a priori. The government that recently came to power promises to develop and implement a pension system.

Vietnam

There are pensions in Vietnam, but they are paid only to those who worked for the state. The average pension of yesterday's civil servant is 30–40 US dollars. The rest of the elderly must rely on the younger generation.

As we see, not in all countries old age can be prosperous. And not all states that do not pay old-age pensions can be considered economically backward.

• Sergey Kryatchenko
• Print

Source: https://evroportal.ru/social/v-kakih-stranah-net-pensii-po-starosti/

Kenya

Figure 6. Flag of Kenya.

The pension system in Kenya covers only 15% of the workforce. Funds are distributed through 3 social programs:

• Payments from the National Social Security Fund. It is formed through payments from employees and employers.
• Pensions for civil servants. Paid from the country's budget.
• Individual savings.

Even in this reduced form, Kenya's social safety net is ineffective. Many workers eligible for old-age benefits simply do not live up to retirement age. Today it is fixed at 55 years, but the possibility of raising this level to 60 years is being discussed. Due to the HIV epidemic, the average life expectancy in the country is only 59 years, so relatively few people live to retire.

Which countries do not have old-age pensions and where is the largest pension?

For Russians who are dissatisfied with the amount of the monthly benefit or its rare indexation, it will be useful to know in which countries there is no old-age pension at all and where only a select few can count on it. For contrast, let’s look at the countries where pensioners live best.

Old people without government support

There are only a few states in the world without state pension support. First of all, this is Tanzania - 95% of the elderly living in the African country are forced to work to the last of their strength in order to somehow feed themselves.

In which countries there is no pension or benefits are paid only to certain categories of citizens?

Afghanistan

Afghanistan is the leader in the AgeWatch anti-rating, which includes the worst countries for retirees. Social benefits are not paid here in principle, and life expectancy does not reach 45 years. Against the backdrop of total illiteracy, rampant crime and military conflicts, the situation looks depressing.

Amounts of old age benefits

Having figured out which countries have no pensions at all or payments are selective, it is interesting to see what pensions are paid to older people in different countries, and for clarity, the data is summarized in a table. It will also help you see what pensions are in European countries in rubles and compare the financial capabilities of pensioners there with those living in Russia. (see the full version of the article on the website)

On a note!

The table shows which country has the smallest pension - India.

Paradise for retirees

If you find out which country has the largest pension, then Luxembourg pensioners live the best

, receiving monthly more than 2 thousand dollars. However, Luxembourgers are the richest people in Europe. Their average official salaries are the highest in the world: 1921 euros (almost 150 thousand rubles).

Switzerland is among the top countries for retirees in the Global AgeWatch Index

. The retirement age in the country is 65 years for men. Women retire a year earlier. And this is with an average life expectancy of 82 years. The pension system provides payments at three levels:

• basic - the so-called state pension: its size is tied to the subsistence level (about 65 thousand rubles);
• labor – the amount depends on the contributions accumulated during working life;
• individual pension savings.

In the Netherlands

Absolutely any resident who is over 65 years old can count on a state pension.

Interestingly, single Dutch people earn more in old age than married people: 70% and 50% of the average lifetime salary.

In addition, professional pensions are very popular, paid by numerous industry funds. Contributions during working life are transferred in equal amounts by both the employer for the employee and the employee himself for himself.

On a note!

The size of the professional pension in the Netherlands is not tied to the amount of contributions, but to the level of earnings.

After retiring from work at 67, Norwegians also do not live in poverty, but the minimum payment depends on whether the citizen is married and how much his spouse earns.

Some interesting facts about the Norwegian pension system:

• a basic minimum pension can be obtained with only 3 years of service;
• to receive the maximum amount you must work for 40 years;
• in the case of a young child, the size of the old-age benefit is doubled;
• The country's state pension fund wisely invests incoming contributions, ensuring a high standard of living for pensioners, despite the fact that they live in one of the most expensive countries in Europe.

Despite the small size of the benefit, it is still a sin for Russian pensioners to complain about the authorities. Of course, I would like to live like the Luxembourgers or Norwegians, but knowing which countries do not pay pensions

completely or they give a meager allowance, you can console yourself with the fact that you were not born in India or China.

Full version of the article on the website

Source: https://zen.yandex.ua/media/subsidii/v-kakih-stranah-net-pensii-po-starosti-i-gde-pensiia-samaia-bolshaia-5c8a4003e05e9f00b3c704c5

Niger

Figure 7. Flag of Niger.

Niger's pension system is more of a formal concept than a real social protection mechanism. Only 3% of the population here receives any old-age benefits. The State Social Protection Fund was created back in 1965, but even half a century later its capabilities are not available to the vast majority of citizens. The retirement age in the country is fixed at 55 years, while the average life expectancy is only 52 years.

Niger is in 2nd place on the list of poorest countries: only Sierra Leone is worse. Under these conditions, almost all residents of Niger prefer to work illegally. Despite this difficult situation, the Niger authorities have been pursuing a policy of increasing pensions in recent years.

See also: indexation of payments to non-working pensioners in Russia in 2020.

Botswana

Figure 8. Flag of Botswana.

The Botswana pension system began in 1996. In old age, residents of this country can qualify for 2 categories of payments:

• Fixed pensions for all citizens from the state budget.
• Employer-based pensions. Organizations are required to pay social tax for their employees once every 5 years, but in practice they rarely comply with this requirement.

Despite Botswana's relatively high level of economic development, the country's pension system is ineffective. 84% of employees of private organizations in old age can only count on a minimum payment of 220 pula (1.4 thousand rubles). Moreover, the minimum retirement age is 6 months higher than the average life expectancy.

conclusions

The problem of pension provision for citizens is typical for many developing countries. However, the reasons for its occurrence may differ. The table briefly summarizes the main parameters of the pension systems discussed in the article.

Table 1. Old-age benefits in developing economies.

A common feature of all these countries is a high level of poverty. When wages are low, people prefer to work in the informal sector. Pension funds do not receive sufficient funding and cannot provide sufficient benefits for all citizens.

The situation is aggravated by low life expectancy. In African countries, people often do not live to retirement age due to poor health care and harsh living conditions.

In Asian countries, the problem of uneven development of cities and rural areas is coming to the fore. Urban residents of China and Thailand can receive quite a decent pension, while their fellow citizens from the countryside claim at best a minimal benefit.

List of countries that do not have old age pensions

Victor, editor-in-chief. Economist. More than 15 years of experience in finance. Date: August 26, 2020. Reading time 8 minutes.

Pension programs operate in all countries of the world: the only question is what part of the population is actually covered by them. Problems arise due to high levels of poverty, a large share of unofficial wages and low life expectancy. Since the late 90s, many countries have carried out social reforms designed to improve the economic situation of people in old age.

Discussions about which countries do not have old-age pensions are often based on outdated data from the 90s. Today, social benefits for older people formally exist in all countries. Even countries with the lowest GDP per capita, such as the Central African Republic and Burundi, have mandatory pension programs and disability benefits.

to find a state in which there are no pensions at all.

The question is what proportion of the population actually receives social benefits in old age. In some countries in Asia and Africa, pensions are available to only 5-10% of citizens. Countries with limited pension provision include:

• China;
• India;
• Thailand;
• Gambia;
• Ghana;
• Kenya;
• Niger;
• Botswana.

In their research, economists not only talk about which countries do not pay pensions to people, but also highlight the reasons for the resulting inequality. Let's look at the problems facing pension systems in each of the listed countries.

China

Figure 1. Flag of China.

In 1995, the Chinese authorities launched a large-scale pension reform. If until the mid-90s only 5.4% of Chinese people applied for a pension, then in 2020 this number was already 60%. However, 40% of the population is still not covered by full social protection. The problem is related to the structure of China's pension system, which divides citizens into 2 categories:

• Civil servants and city residents. Men receive a pension from the age of 60, women - from 55 or 50 years, depending on the severity of work. For this category of citizens, the pension fund is formed from two sources: contributions from employers and employees’ own payments. The average pension is 2.3 thousand yuan (23 thousand rubles).
• Rural residents and low-income urban workers. They can only claim old-age benefits, which are paid by the regional budget. The minimum pension is 127 yuan (1.26 thousand rubles), which is not enough even to buy food.

At the same time, about 20% of Chinese people still cannot count on any of the pension programs.

India

Figure 2. Indian flag.

India's social protection levels remain among the lowest in Asia. Only 12% of the population can count on receiving a pension in this country. Civil servants remain the most protected category: most of them can leave their jobs at 60 years old. At the same time, the pension amount often does not exceed 2 thousand rupees (the exchange rates of the Indian currency and the ruble are approximately equal).

Since 2004, the country has been undergoing large-scale social reform. It involves dividing the pension into 2 parts: voluntary contributions and mandatory taxes for employers. The reform has not produced the expected results: its consequences have so far affected only 1% of the labor force in India.

Read about plans for pension reform in Russia.

Figure 3. Flag of Thailand.

Until the end of the 90s, only pensions for officials were in effect in Thailand. The situation changed in 1998 when the Social Security Act was passed. The government of the country proposed a two-tier payment system: separately for civil servants and employees of private companies.

Every company in Thailand is required to pay taxes for its employees. 3% of wages goes into the pension fund, and the state adds another 1% from the budget. At the same time, more than 40% of able-bodied citizens do not receive an official salary. These people will only be able to claim a minimum benefit, which is 700 baht (1.4 thousand rubles).

Although social support formally applies to all older people, in approximately 40% of cases it does not cover even basic needs.

Gambia

Figure 4. Flag of Gambia.

Pensions in The Gambia are paid from age 60. At the same time, only 2 categories of citizens can claim good social support in old age:

• Employees of budgetary organizations and commercial firms with government participation.
• Military and police.

old age benefits for employees of the Ministry of Internal Affairs 2020.

Some workers employed in manufacturing or living in cities can also count on receiving pensions. At the same time, there are no old-age benefits for citizens who are employed in agriculture. People working illegally face the same problem. As a result, the pension system covers only 20% of Gambian citizens.

Ghana

Figure 5. Flag of Ghana.

The Ghana pension system is divided into two branches. One of them is the National Insurance and Social Protection Fund. He works with most categories of citizens, including private and public sector employees, farmers, traders and small business owners. The second branch, called CAP 30, deals with payments for the military, police and some government officials.

Both programs together cover the needs of 10% of the workforce. The remaining 90% of the Ghanaian population does not receive any support from the government in old age. The reason for such a low level of social protection is the high share of the shadow economy. In addition, due to high inflation, money in government funds quickly depreciates.

In 2004, mass worker protests swept across the country. The Ghanaian authorities were forced to reform the National Fund. Under the new rules, men and women can retire at age 55. Despite some progress, the country's pension system is still in its infancy.

Kenya

Figure 6. Flag of Kenya.

The pension system in Kenya covers only 15% of the workforce. Funds are distributed through 3 social programs:

• Payments from the National Social Security Fund. It is formed through payments from employees and employers.
• Pensions for civil servants. Paid from the country's budget.
• Individual savings.

Even in this reduced form, Kenya's social safety net is ineffective. Many workers eligible for old-age benefits simply do not live up to retirement age.

Today it is fixed at 55 years, but the possibility of raising this level to 60 years is being discussed.

Due to the HIV epidemic, the average life expectancy in the country is only 59 years, so relatively few people live to retire.

Niger

Figure 7. Flag of Niger.

Niger's pension system is more of a formal concept than a real social protection mechanism. Only 3% of the population here receives any old-age benefits.

The State Social Protection Fund was created back in 1965, but even half a century later its capabilities are not available to the vast majority of citizens.

The retirement age in the country is fixed at 55 years, while the average life expectancy is only 52 years.

Niger is in 2nd place on the list of poorest countries: only Sierra Leone is worse. Under these conditions, almost all residents of Niger prefer to work illegally. Despite this difficult situation, the Niger authorities have been pursuing a policy of increasing pensions in recent years.

Botswana

Figure 8. Flag of Botswana.

The Botswana pension system began in 1996. In old age, residents of this country can qualify for 2 categories of payments:

• Fixed pensions for all citizens from the state budget.
• Employer-based pensions. Organizations are required to pay social tax for their employees once every 5 years, but in practice they rarely comply with this requirement.

Despite Botswana's relatively high level of economic development, the country's pension system is ineffective. 84% of employees of private organizations in old age can only count on a minimum payment of 220 pula (1.4 thousand rubles). Moreover, the minimum retirement age is 6 months higher than the average life expectancy.

conclusions

The problem of pension provision for citizens is typical for many developing countries. However, the reasons for its occurrence may differ. The table briefly summarizes the main parameters of the pension systems discussed in the article.

Table 1. Old-age benefits in developing economies.

A common feature of all these countries is a high level of poverty. When wages are low, people prefer to work in the informal sector. Pension funds do not receive sufficient funding and cannot provide sufficient benefits for all citizens.

The situation is aggravated by low life expectancy. In African countries, people often do not live to retirement age due to poor health care and harsh living conditions.

In Asian countries, the problem of uneven development of cities and rural areas is coming to the fore. Urban residents of China and Thailand can receive quite a decent pension, while their fellow citizens from the countryside claim at best a minimal benefit.

: how the pension system developed in India

India accurately reflects the trends and challenges faced by social welfare authorities in developing countries. talks about the results of reforms carried out since the late 90s.

Source: https://yakapitalist.ru/finansy/strany-bez-pensii/