SOCIAL SECURITY COVERAGE AND BENEFITS PILLARS BY WORLD BANK

SOCIAL SECURITY COVERAGE AND BENEFITS PILLARS BY WORLD BANK

1. PILLARS 0

   • Non contributory social assistance financed by the state,fiscal conditions permitting, to deal explicity with the poverty alleviation objective in order to provide all of the elderly with a minimal level of protection. this is to ensure that people with low lifetime incomes are provided with low lifetime incomes are provided with basic protection in old age, including those who only participate marginally in formal economy Example: in the form of a demogrant, social pension , or general social assistance typically financed by the local, regional or national government.

2. PILLARS 1

   • Mandatory 'first pillar' with contribution linked to varying degrees to earning with the objective of replacing some portion of lifetime pre-retirement income. the first pillar address, among others, the risk of individual low earning, and unappropriate planning horizons due to the uncertainty of life experiances and the lack of financial market.

3. PILLAR 2

   • Typically an individual saving account or contribution plan with a wide set of design options including active or passive investment management managers,and options for the withdrawal phase. It is a independent investment management

4. PILLAR 3

   • A voluntary third pillar taking in many forms. For examples: individual saving for retirement, disability or death; employer sponsored; defined benefit or defined contribution) but it is essentially flexible and discretionary in nature. Compensate for rigidities in design of other systems but include similar risk as second pillars

5. PILLARS 4

   • A non-financial fourth pillar that includes acces to informal support (family), other formal programs (healthcare or housing) and other individual financial and non-financial assets.( such as home ownership)