History of pensions

The history of the national pension system is still a young one. Over the last two decades, the national pension system has been developing rapidly and set ambitions goals of completely covering the entire population and provide an adequate income to retirees. However, to this day many states still have immature formal pension schemes. This is true for countries in Africa, South and Eastern Asia, and Latin America. Often, the state guarantees only a minimum income to its older citizens. Moreover, even developed countries provide low state pensions to the average citizen. Thus, more than half of the world’s elderly rely exclusively on informal and traditional arrangements for income security.