Costa Rica's General Superintendence of Insurance published an opinion piece marking 25 years since the Worker Protection Law entered into force, arguing that Costa Rica’s pension system faces escalating pressures from demographic change and that a serious policy debate on proposed reforms has yet to begin. The article points to an international conference in San José on “Pension Funds, Challenges in the Future”, sponsored in connection with the anniversary by international pension supervisor organisations and the pensions supervisor Supen, which focused on challenges for pension funds amid demographic shifts, evolving experience and political trends. It highlights a steep fall in the estimated ratio of active workers to people aged 65 or older from more than nine in 1950, to six and a third around the turn of the century, to an estimated 3.5 this year, with projections of 1.43 by mid-century and 0.58 by the end of the century if current parameters remain. The piece also cites the need for adjustments to the IVM, Magisterio and Judicial basic regimes, removal of incentives that encourage informality, and ensuring that all older people have a pension, while noting that political polarisation makes consensus-building for forward-looking reforms more difficult.
Superintendencia General de Seguros de Costa Rica 2025-02-24
Costa Rica's General Superintendence of Insurance publishes opinion highlighting growing pension reform pressures as the Worker Protection Law turns 25
Costa Rica's General Superintendence of Insurance marked 25 years since the Worker Protection Law, highlighting pension system pressures from demographic changes. The article underscores the need for policy debate on reforms, citing a declining worker-to-retiree ratio and necessary pension regime adjustments. It also notes challenges in achieving consensus for reforms amid political polarisation.