The Paraguayan Ministry of Labor, Employment and Social Security (MTESS), in collaboration with the Inter-American Center for Social Security Studies (CIESS), held an online webinar titled "Public Policies in an Aging Society: Challenges for the Sustainability of Social Security and Pension Systems" on Wednesday, April 23, 2025, from 1:00 PM to 3:00 PM.
This webinar aimed to analyze, discuss, and raise awareness about the challenges faced by pension systems in an aging society. It was held as part of the Social Security Week, commemorating the National Social Security Day on April 27th.
CIESS, as the educational arm of the Inter-American Social Security Conference (CISS), plays a role in training, educating, and guiding personnel involved in the provision of social security and welfare services, public policy development, and technical advice. Domestic and international experts attended this webinar, engaging in in-depth discussions on the impact of demographic shifts—namely, increasing life expectancy and the relative decline of the economically active population—on pension systems.
Paraguay, like many Latin American countries, faces the challenge of adjusting its social security system to ensure a dignified old age through economic stability and adequate social welfare benefits. In this context, the webinar served as an important platform to share experiences from various countries and explore policy solutions for building sustainable social security systems.
The Seriousness of an Aging Society and the Crisis of Social Security Systems
One of the most prominent demographic changes observed globally in recent years is the aging of society. While advances in medical technology and improvements in living standards have led to a steady increase in human life expectancy, birth rates continue to decline. This shift in population structure has various impacts across society, but it poses particularly serious challenges to social security systems, especially pension systems.
An increase in the elderly population directly translates to a rise in the number of pension beneficiaries, which in turn leads to increased pension payouts. Conversely, a decline in birth rates results in a relative decrease in the economically active population, weakening the contribution base that sustains the pension system. This imbalance raises serious concerns about the sustainability of current pension systems and can lead to an increased burden on future generations and the financial instability of the pension system.
Furthermore, an aging society creates not only pension financing issues but also various social and economic problems such as increased healthcare costs, rising demand for long-term care services, and changes in the labor market. The growth of the elderly population inevitably leads to increased demand for medical and social welfare services, placing a significant burden on national finances. Additionally, an aging population can lead to a decrease in the labor force, hindering potential economic growth and requiring changes in industrial structures.
These complex issues suggest that addressing them requires not only responses at the individual country level but also international cooperation and collaboration. It is a critical time for each country to consider the various aspects of an aging society and to expedite in-depth analysis and future-oriented policy design for the entire social security system.
Key Discussion Points from the Webinar
The webinar featured in-depth discussions on the characteristics of an aging society and the various challenges it poses to social security systems. In particular, the diverse policy approaches to ensure the sustainability of pension systems garnered significant attention.
Experts in attendance pointed out the structural problems of an increasing number of pension beneficiaries and a decreasing economically active population due to aging. They presented various reform measures to alleviate the financial pressures facing current pension systems. Specifically, the need for adjusting the retirement age, rationally adjusting pension benefit levels, and establishing a multi-pillar pension system was emphasized. A multi-pillar pension system seeks to diversify old-age income security by activating not only public pensions but also private and occupational pensions.
Furthermore, experts discussed effective response strategies to the increasing demand for medical and long-term care services in an aging society. They agreed on the urgency of strengthening the healthcare and long-term care service provision systems for the elderly and securing related financial resources. Concrete alternatives such as establishing smart healthcare systems utilizing information and communication technology (ICT) and strengthening community-based integrated healthcare systems were proposed.
In addition, adaptation strategies to changes in the labor market due to aging were an important topic of discussion. The need for policy support to utilize the experienced skills and knowledge of older people, such as extending the retirement age, expanding part-time employment, and strengthening vocational training and retraining programs, was emphasized. The importance of proactively preparing for structural changes in the labor market, such as automation and digital transformation, was also discussed.
The webinar was evaluated as a valuable opportunity to deepen the understanding of the complex challenges of an aging society and to share various policy ideas for building sustainable social security systems.
Conclusion and Future Tasks
This webinar once again highlighted the serious impact of an aging society on social security systems and the urgent need for corresponding measures. In particular, it became clear that multifaceted policy efforts are required to ensure the sustainability of pension systems, effectively address the increasing demand for medical and long-term care services, and adapt to the changing labor market.
Moving forward, it will be necessary to conduct in-depth research on specific policy measures based on the discussions at this webinar and to prepare feasible policies through continuous communication and collaboration with various stakeholders. Furthermore, strengthening information exchange and cooperation with the international community to build a joint response system for the aging issue is also an important task.
Based on the outcomes of this webinar, the Paraguayan government should make more active efforts to build a sustainable social security system that minimizes the burden on future generations while ensuring a stable old age for all generations.
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