Latin America's Aging Population Presents Challenges

Latin America is facing an urgent challenge as its population ages. Falling fertility rates and rising life expectancy are leading to an increasing proportion of older people in the region. This demographic shift has significant implications for government spending, particularly in the areas of pensions and healthcare. Pensions are becoming more costly as more people draw on them, and the payouts are often insufficient. Many countries in the region lack retirement savings options, especially for informal workers. Healthcare systems are also ill-prepared to handle the needs of an aging population, with few public nursing homes and limited affordable care services. Altogether, this rising cost of pensions and healthcare puts a strain on government budgets, leaving little room for investment in younger generations.