Commentary on Peru’s domain ranks in the

2015 Global AgeWatch Index

By Carlos Quiñones, Economist, cquinones@pucp.pe

48
Global AgeWatch Index rank
out of 96

Peru ranks moderately on the Global AgeWatch Index, at 48 overall. It performs

best in the capability domain (30), with one of the highest employment rates
(75.5%) in the region and has an above regional average value for educational
attainment among older people (30.4%).

It also ranks high in the health domain (32), with above regional average values
on all health indicators. Peru ranks low in the income domain (68), with high
levels of old-age poverty (25.4%) and low pension income coverage (41.9%)
compared to other countries in the region.

It ranks lowest in the enabling environment domain (79), with below regional
average values for three out of four indicators: social connectedness (75%), civic
freedom (65%), and satisfaction with public transport (49%).

Age Demands Action campaigners in Peru will be campaigning on the need for a
UN convention on the rights of older people.

Income security 68
50.5/100

According to the National Institute of Statistics and Information (INEI)

projections, there are just over 3 million older people in Peru. Private Pension
System and Standardization Office (ONP) statistics to June 2014 state that 16.5%
older people enjoyed a contributory pension and 15.4% received Pension 65, a
non-contributory pension that provides US$ 40 monthly to all adults 65 and over
who live in extreme poverty. The scheme aims to reach 500,000 older adults this
year.

Health status 32
68.1/100

Peru ranks 32 in the health domain. Between 2010 and 2012 there was a 20.1%
increase in health insurance for the older people. In 2012, 88.5% of older people
were registered in the health insurance programs (EsSalud and SIS). The
strategy in health establishments include interventions such as activities related
to health promotion and prevention of health risks. Health establishments also
have to develop social, cultural, educational, recreational and productive activities
for older people. Despite the progress, the health services still have a lack of
specialist care. For instance, there are no medications for certain illnesses that
affect older people particularly. Also care centres and health clubs for older
people still spend much of their time and budget on recreational activities.
 Capability 30
44.3/100

The challenges facing older people in Peru are no different to those in the rest of
Latin America and go beyond access to a decent pension.

Peru ranks third in the region in the Capability domain for the Global AgeWatch
Index 2015. The Index also highlights a decline in the country’s economic growth,
which has forced many older people to become engaged in the labour market.
According to the INEI, 61.8% of people over 60 are heads of households and
18.9% of children and adolescents in the country live in these homes. This
explains why 1,568,819 older people remain part of the economically active
population, working in informal, unstable jobs and without any social security.
More than 50% are self-employed and those who are employees receive an
average monthly income of 885.1 soles (US$274).

Almost 2 out of 10 older Peruvians are unable to read or write. Only 4 out of 10
older people have completed primary education and only 22% have completed
secondary level. Only 15% of older people have taken higher education courses.

Enabling environment 79
56.9

Despite progress made in other areas Peru has one of the lowest positions of
Latin American ranking in this domain (79). It scores under the regional average
in all indicators. Some achievements have been made in the last couple of years.
For instance 3,244,834 older people now got an Identity Card. Furthermore 143
Older People Centers (EsSalud) and 1,840 clubs for older people (SIS) have been
established; and finally 266 organisations of older people have been legally
established. These initiatives may help improve older people’s feeling of social
connectedness.

The Global AgeWatch Index ranks countries by how well their older populations are faring.
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