OLD AGE SECURITY REGIONAL OVERVIEW Bangkok 05th July 2019

Evolution in Fertility Rates

Challenges - The fast pace of Ageing ADB, 2017 OECD countries took 50-100 years to go from young to old societies; Asian countries are taking just 20-25 years Viet Nam will have 21 million pensionable age people by 2030 By 2100, Lao’s old age dependency ratio will rise six fold

TODAY PAST

32% of older persons do not receive a pension GLOBALLY

45% of older persons do not receive a pension ASIA & PACIFIC

68.5% of older persons do not receive a pension ASEAN

67% of of older persons in Viet Nam depend on their family

Half of older persons in Phillipines face «some» or «considerable» difficulty in meeting expenses

Public expenditure on old-age pensions and other benefits Public social protection expenditure on pensions and other benefits, excluding health, for persons above statutory pensionable age (% of GDP), and share of older population 65 and above in total population (%) On average, of GDP is allocated to social protection for older persons Source: ILO, World Social Protection Report 2017-19, mainly based on Social Security Inquiry Data on social protection expenditure for children in 139 countries show that, on average, 1.1 per cent of GDP is spent on child benefits Large regional disparities, from 0.1 per cent in North Africa and the Arab States to 2.5 per cent in Europe. Significant underinvestment in children

ASEAN

Closing the Gap Will not happen only through contributory schemes Long period until everyone is covered (scheme mature) High prevalence of informal economy

Social Protection in ASEAN Member States Late starters Quickly catching up

Fast developments Tax Funded Pensions Countries with Universal Coverage Thailand and Brunei (+ Timor Leste) Countries with means-tested pensions Philippines, Indonesia, Singapore, Malaysia Countries with limited coverage but universal principles Myanmar, Viet Nam Countries with advanced discussions on universal coverage Malaysia, Viet Nam

TAX FUNDED PENSIONS

Be aware of the risks of delaying unpopular reforms

Ensure Pensions Adequacy

Indexation of Benefits

NEED FOR INTEGRATED SOLUTIONS

TAX FUNDED PENSIONS

Be aware of the risks of delaying unpopular reforms

Nuno Cunha – cunhan@ilo.org Thank you Nuno Cunha – cunhan@ilo.org