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Supporting Ageing Populations in Developing Countries: A Comparative Analysis of Pension Schemes and Policy Insights

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  • Tual Sawn Khai

    (School of Graduate Studies, Lingnan University, Hong Kong, China
    Refugee Law Initiative (RLI), School of Advanced Study, University of London, London WC1E 7HU, UK
    These authors contributed equally to this work.)

  • Jacob Oppong Nkansah

    (Institute of Policy Studies, School of Graduate Studies, Lingnan University, Hong Kong, China
    These authors contributed equally to this work.)

  • Abdul Wali Khan

    (Institute of Policy Studies, School of Graduate Studies, Lingnan University, Hong Kong, China
    Department of Education, College of Education, National Chengchi University, Taipei City 116, Taiwan)

  • Muhammad Asaduzzaman

    (Department of Community Medicine and Global Health, Institute of Health and Society, Faculty of Medicine, University of Oslo, 0450 Oslo, Norway)

Abstract

The rapid growth of the elderly population is a major global demographic and social issue. Unfortunately, there is a shortage of pension plans and social security programmes for this population in developing countries, which has severe consequences for their quality of life and well-being. In this article, we aim to better understand the pension systems in developing country contexts such as Ghana, Pakistan, and Myanmar by reviewing official government materials (for example, pension reports) and the published literature to suggest relevant policy recommendations. We observed several policy implementation gaps and inequities in pension schemes for older people, specifically for informal and private sector workers. Considering the size of formal versus informal economies and the level of development index of each country, we suggest a wide variety of options for pension policies, financing, designing cash benefits, and pension payments to cover all older citizens. This article addresses the unmet needs of the elderly and their wider economic sustainability to ensure social justice and resource utilisation. Governments in developing countries should embrace and establish unique, inclusive, and friendly policies encompassing the informal sector to warrant older adults’ functional and social well-being with dignity and honour.

Suggested Citation

  • Tual Sawn Khai & Jacob Oppong Nkansah & Abdul Wali Khan & Muhammad Asaduzzaman, 2024. "Supporting Ageing Populations in Developing Countries: A Comparative Analysis of Pension Schemes and Policy Insights," Challenges, MDPI, vol. 15(2), pages 1-16, May.
    • Handle: RePEc:gam:jchals:v:15:y:2024:i:2:p:27-:d:1400657
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    References listed on IDEAS

    as
    1. William Adzawla & Shaibu Azumah Baanni & Roger Fianko Wontumi, 2015. "Factors influencing informal sector workers` contribution to pension scheme in the tamale metropolis of Ghana," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 5(2), pages 37-45, February.
    2. Robert Holzmann, 2000. "The World Bank Approach to Pension Reform," International Social Security Review, John Wiley & Sons, vol. 53(1), pages 11-34, January.
    3. Emmanuel Sarpong-Kumankoma, 2021. "Financial literacy and retirement planning in Ghana," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 15(1), pages 103-118, October.
    4. Barr, Nicholas & Diamond, Peter, 2008. "Reforming Pensions: Principles and Policy Choices," OUP Catalogue, Oxford University Press, number 9780195311303.
    5. William Adzawla & Shaibu Azumah Baanni & Roger Fianko Wontumi, 2015. "Factors Influencing Informal Sector Workers’ Contribution to Pension Scheme in the Tamale Metropolis of Ghana," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 5(2), pages 37-45.
    6. Salman Ahmed Shaikh, 2015. "Welfare Potential of Zakat: An Attempt to Estimate Economy wide Zakat Collection in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 1011-1027.
    7. Marta Regúlez‐Castillo & Carlos Vidal‐Meliá, 2012. "Individual information for pension contributors: Recommendations for Spain based on international experience," International Social Security Review, John Wiley & Sons, vol. 65(2), pages 1-27, April.
    8. Savita Shankar & Mukul G. Asher, 2011. "Micro‐pensions in India: Issues and challenges," International Social Security Review, John Wiley & Sons, vol. 64(2), pages 1-21, April.
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