OPC 5 Public Policy Evaluation 5 SITUATION OF THE ARGENTINE INTEGRATED PENSION SYSTEM (SIPA)

SITUATION OF THE ARGENTINE INTEGRATED PENSION SYSTEM (SIPA)

June 28, 2022
  • The pension system administered by ANSES had 9,905,314 contributors as of December 2021, representing 48% of the economically active population.
  • There were 5,420,234 beneficiaries, 75.9% of the population within the theoretical retirement age.
  • Of the benefits granted, 95.9% belong to the general system and two thirds of them are beneficiaries of moratoriums.
  • There are 29% of informal workers who are not covered by any regime and more than 600,000 beneficiaries continue to work to supplement their pensions.
  • The system only covers 51% of the benefits it pays. To close the gap: either the active contributors are doubled or the contributions on remunerations are increased by 26 percentage points.
  • Simplified regime single taxpayers represent 16.9% of the population making contributions, but they account for only 1.3% of the system’s contributory financing.
  • About 1.3 million people are unemployed and do not make any contributions.
  • A priori, the pensions of the general system do not allow maintaining the level of consumption of the economically active population. A reduction in the replacement rate would move further away from the main principles of a pension system, which is to guarantee the intergenerational distribution of income.
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