On March 23, 2025 he marked a Milestone in the history of the Argentine pension system: After almost two decades of validity, The pension moratoriums came to an end. He Executive power decided not to exercise the power to extend this scheme for another two years and this opens a crucial debate about the future of the economic protection of older adults in the country. While the end of the moratoriums does not imply that the elderly are homeless – because the Universal pension for the elderly (Puam) It will continue to be an alternative from the age of 65 -, does highlight the deep inequities and unsustainability of an system that, although inclusive, requires an urgent comprehensive reform.
The Argentine pension system is one of the oldest and most consolidated in the region. With a coverage that exceeds 90% of those over 65, it has managed to significantly reduce poverty and destitution in this age group, placing them in less than half and a fifth, respectively, of the rates of the total population. This achievement is linked to coverage, which extended to almost the entire population thanks to the moratoriums implemented since 2005. Among the 5 million people who currently perceive a retirement for old age of old age of old age ANSES3.8 million obtained it thanks to this mechanism. However, this emergency solution, conceived as a temporary patch 20 years ago, has generated distortions that today hinder the sustainability and equity of the system and its permanent extension does not solve the background problems.
The Argentine pension system was designed assuming that employment in our country would converge to formal contracts for one hundred percent of workers and that the population could easily divide between those who formally work their entire lives and those who never do it (and, therefore, they depend economically on assets). In that logic, it was raised as a condition to retire to have at least 30 years of pension contributions. However, reality is far from that way. According to a recent report from the Undersecretariat of Social Security, only 24% of the population that reaches the age of retirement meets this requirement. Another 12% does it without contributions or with less than 12 months and the remaining 59% have worked and fulfilled their obligations, but those contributions will not be recognized when requesting a retirement. The moratorium was a legal “trap” for this population, which could buy in comfortable installments the years of contributions that were missing. From now on, those who do not reach the minimum will access a PUAM equivalent to 80% of the minimum retirement. This means that 71% of the new retirees will receive this reduced benefit, which aggravates existing inequities. For example, a person with 29 years of contributions as an employee in a dependency relationship with average salaries will receive an initial credit equivalent to 18% of their salary -a third of what someone receives with the same labor history, but with another year of contributions -while someone with minimal contributions such as monotributista can obtain more generous benefits than a wage earner with greater contributions, but less years.
The Argentine pension system is also extremely expensive. Every year, the retirement and pensions of all the schemes in force in the country They represent an expense close to 10% of GDP on average in recent years. This expense is very high if we compare it with countries with similar demography, such as Chili either Costa Ricaand resembles much more aging nations, such as Sweden either Belgium. The high cost originates in that we have many young beneficiaries (according to Census 2022, there are more than 2.8 million beneficiaries under 65), many with more than one benefit (1.1 million) and some very generous exception schemes.
Problems extend to other areas, such as death pensions (We continue to grant life pensions to young widows and widows in a position to work, as at the beginning of the last century, and double benefits without any efficiency criteria), the non -contributory pensions due to disability (which are granted with little transparent procedures and without adequate controls), the mobility (where we have a reasonable principle – adjust benefits with inflation – but that must be improved and consolidated in a law) or the absence in the practice of a scheme of pension voluntary savings.
These problems will be exacerbated over time, as our population ages, making more expensive and less effective to the system. Continue with an emergency response strategy and patches, such as moratoriums, only postpone solutions, making them more difficult in the future. Therefore, from CIPPECtogether with colleagues from different institutions, we are working on a comprehensive reform proposal, which unifies benefits, simplify rules and eliminate distortions.
The proposal is ambitious but necessary. It raises a multipillary system with three components: a universal basic pillar (similar to the current PUAM), a proportional pillar based on the complete history of contributions, without a minimum requirement of years, and a voluntary pension pillar pension. This design eliminates the gap between contributory and non -contributory benefits, rewards the effort of those who contributed and reduces the dependence of exceptional solutions such as the moratoriums.
Implementing this reform will not be simple. Requires broad political consensus in a polarization context and an election year like 2025where the topic could become a tent more than a project of State. That is why it is proposed to create a technical commission of experts convened by the Executive to prepare a comprehensive proposal towards the end of 2025, a pragmatic step that could depolitize the debate and lay the foundations for a long -term solution. However, success will depend on the will of the actors involved to prioritize equity and sustainability over sectoral interests.
A critical aspect is the transition. Respecting the acquired rights of those who have already retired under the current rules implies that the benefits of the reform will gradually be seen, as new generations enter. This requires patience and clear communication to avoid resistance. Likewise, the elimination of exception regimes -which represents more than 40% of the benefits and will face opposition from privileged sectors. Negotiate your integration into the general regime, recognizing additional contributions and designing gradual transitions, will be key to avoid conflicts.
The end of the moratoriums is an opportunity to rethink the Argentine pension system from its foundations. LAs current inefficiencies allow to imagine a scheme where, at the same time, the protection of older adults is improved and significant fiscal savings are generated. This would not only relieve pressure on public finances, but would guarantee decent old age for millions of Argentines in a context of population aging and changes in the labor market.
The proposed reform balances inclusion and equity. When universalizing a basic pillar and linking the benefits to the history of contributions, all 65 years old are protected while the contributory effort is rewarded, Eliminating the distortions that punish those who were close to 30 years of contributions or disproportionately benefit those who took advantage of exception regimes. In addition, adjustments such as the gradual increase in retirement age – aligned with a life expectancy that increases continuously – and the modernization of death pensions respond to demographic and social realities that current norms ignore.
On March 23, 2025 it should not be only the end of an emergency policy, but the beginning of a deep transformation. The Argentine pension system has demonstrated its ability to include, but also its limits to sustain and distribute its resources. The proposal is clear: a multipilar model that combines universality, proportionality and sustainability. Achieving this will require consensus, political courage and a compromise with the long term. In a country where social forecast is one of the most relevant public policies, with a direct impact on 10% of GDP and the lives of millions, there is no room to continue postponing this discussion. The future of older adults – and on the country’s economic stability – depends on it.
CIPPEC main researcher
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
