Better Pension Institutions in Latin America and the Caribbean: The Role of Monitoring Mechanisms and Automatic Adjustment Rules
To facilitate the process of adapting to aging without putting other economic development objectives at risk, pension systems are gradually incorporating mechanisms that change depending on the demographic context or financial balance. Due to the political and social complexity of parametric adjustments, some countries are implementing self-correcting mechanisms for imbalances in the pension system. These types of mechanisms have been generically called sustainability factors or adjustment rules.