The impact of a minimum pension on old age poverty and its budgetary cost. Evidence from Latin America

This paper examines the impact on old age poverty and the fiscal cost of universal minimum oldage pensions in Latin America using recent household survey data for 18 countries. Alleviatingold age poverty requires different approach from other age groups and a minimum pension islikely to be the only alternative available. First we measure old age poverty rates for all countries.Second we discuss the design of minimum pensions schemes, means-tested or not, as wellas the disincentive effects that they are expected to have on the economic and social behavior ofhouseholds including labor supply, saving and family solidarity. Third we use the household surveysto simulate the fiscal cost and the impact on poverty rates of alternative minimum pensionschemes in the 18 countries. We show that a universal minimum pension would substantiallyreduce poverty among the elderly except in Argentina, Brazil, Chile and Uruguay where minimumpension systems already exist and poverty rates are low. Such schemes have much tobe commended in terms of incentives, spillover effects and administrative simplicity but have ahigh fiscal cost. The latter is a function of the age at which benefits are awarded, the prevailinglongevity, the generosity of benefits, the efficacy of means testing, and naturally the fiscal capacityof the country.

Reference values for handgrip strength in among healthy young adults

Background: Isometric grip strength, evaluated with a handgrip dynamometer, is a marker of current nutritional status and cardiometabolic risk and future morbidity and mortality. We present reference values for handgrip strength in healthy young Colombian adults (aged 18 to 29 years). Methods: The sample comprised 5.647 (2.330 men and 3.317 women) apparently healthy young university students (mean age, 20.6±2.7 years) attending public and private institutions in the cities of Bogota and Cali (Colombia). Handgrip strength was measured two times with a TKK analogue dynamometer in both hands and the highest value used in the analysis. Sex- and age-specific normative values for handgrip strength were calculated using the LMS method and expressed as tabulated percentiles from 3 to 97 and as smoothed centile curves (P3, P10, P25, P50, P75, P90 and P97). Results: Mean values for right and left handgrip strength were 38.1±8.9 and 35.9±8.6 kg for men, and 25.1±8.7 and 23.3±8.2 kg for women, respectively. Handgrip strength increased with age in both sexes and was significantly higher in men in all age categories. The results were generally more homogeneous amongst men than women. Conclusions: Sex- and age-specific handgrip strength normative values among healthy young Colombian adults are defined. This information may be helpful in future studies of secular trends in handgrip strength and to identify clinically relevant cut points for poor nutritional and elevated cardiometabolic risk in a Latin American population. Evidence of decline in handgrip strength before the end of the third decade is of concern and warrants further investigation