Six Challenges Threaten Sustainability of Costa Rican Pension System, Report Finds

The sustainability of the Costa Rican Social Security Fund's (CCSS) non-contributory pension system (IVM) faces significant threats, according to a new report from the Pension Management division. The report details six primary challenges that could jeopardize the system's future.

Among the most critical issues identified are the demographic shifts resulting from an aging population. This trend increases the number of beneficiaries relative to contributors. Additionally, the prevalence of informal labor contributes to a smaller contribution base, as many workers do not pay into the formal system.

The report also considers the potential effects of migration on the pension system. While not detailed, this factor suggests that population movement could influence the balance of contributors and beneficiaries. These combined pressures raise serious questions about the IVM's long-term financial viability and its ability to meet future obligations.