Rising costs in Argentina, much of Latin America send retirees to work

BUENOS AIRES, June 5 (UPI) -- Argentine retirees have become one of the groups hardest hit by President Javier Milei's fiscal austerity measures, which have pushed a growing number of older adults back into the workforce to supplement incomes that no longer cover the cost of living.

Over the past two years, the number of employed Argentines age 65 and older increased 12.7%, sociologist Candelaria Rueda, a researcher at the Argentina Grande Institute, told UPI.

The trend has had a particularly strong impact on women. Labor force participation among people older than 65 increased 14.5% for women, nearly four percentage points higher than the 10.8% increase recorded among men, according to a report by the think tank based on official data from the National Institute of Statistics and Census, known as INDEC.

One of those women is Patricia Guscione, 63. She worked as a teacher for decades and retired in 2021 at age 60, the legal retirement age for women in Argentina.

But rising living costs gradually eroded the value of her pension, leaving her unable to cover household expenses. When a call for retired teachers was issued in 2024, she applied. Today, she is back teaching in public schools.

"I lived on my pension for three years, but the reality is that it lost so much value that there came a point when I could no longer make it to the end of the month. I still have two teenage children who depend on me," she told UPI.

Rueda said inflation remains a defining factor in Argentina's economy and "causes incomes to lose value at an unusually rapid pace."

"In addition, there has been a clear political decision to deregulate prices, which has led private health insurance premiums to rise 400% over the past two years," she said.

At the center of the issue is Argentina's minimum pension, the basic benefit received by more than half of the country's retirees. It currently totals 450,300 Argentine pesos per month, or about $320. That includes a government assistance bonus that has remained frozen since early 2024.

Because the supplement has not been adjusted, the purchasing power of the minimum pension has fallen by nearly 10% compared with late 2023.

At the same time, food prices have continued to rise sharply, further reducing retirees' spending power. Economic pressures have also intensified following cuts to free prescription drug coverage provided through the Comprehensive Medical Care Program, known as PAMI, Argentina's main public healthcare system for retirees and pensioners.

Mario Perelli, 70, spent most of his career as an accountant, but now drives for ride-shareing platforms to supplement his income.

"I had never seen an economic situation like the one we are living through now. It keeps getting harder. I thought I had completed my working years and that retirement would allow me to enjoy life, travel and rest. Instead, I ended up driving for an app because I need to help support my household," he said.

Juan Gómez, 76, faces a similar reality. After years working at an accounting firm, he now work for Uber and drives a taxi.

"I lived through different economic periods, and there were difficult moments under other governments, but this is terrible. I see it in retail stores, butcher shops, auto parts stores and oil-change businesses. There are hardly any customers. I hope things can be resolved and that we can move forward," he said.

Gala Díaz Langou, executive director of the International Panel on Social Progress, linked the crisis to public spending cuts implemented by the current administration.

"In 2024, which was the year of the deepest adjustment, 19% of fiscal spending cuts were applied to the pension system," she told UPI.

She also pointed to the continued freeze on the bonus supplement for lower pensions and the end of a program that allowed workers who had not completed the legally required 30 years of contributions to qualify for retirement benefits.

The trend of older adults extending their working lives is not limited to Argentina. It has become a regional phenomenon as Latin America faces a rapid demographic transition, lower levels of economic development and weaker social protection systems.

According to the Economic Commission for Latin America and the Caribbean, employment among older adults is increasing across much of the region because pensions are insufficient to cover basic living expenses.

"As a result, employment among retirees functions as a refuge from the shortcomings of the system rather than a choice. When someone who contributed for decades ends up cleaning houses at age 82 or selling goods on the street, what that reflects is a protection system that failed to sustain the old age it helped create," the commission said.

Carlos Román, executive director of SeniorLab UC, an aging innovation laboratory at the Pontifical Catholic University of Chile, told UPI that 1 in 4 older adults in Latin America was part of the labor force in 2024.

He said the trend is particularly visible in Chile among older age groups, where a significant share of people who have already reached retirement age continue working.

For Román, the phenomenon raises two key questions: Under what conditions do older adults work and what drives them to remain economically active?

Regarding working conditions, he warned that labor informality rises sharply with age.

"Labor informality does not decline over time. It accelerates, rising from 27.7% among people ages 60 to 64 to nearly 48% in the next age group and exceeding 60% among those older than 70," he said.

He added that the impact is uneven across social groups.

"Among the poorest women ages 65 to 69, nearly 9 out of 10 work without a contract or pension coverage. About half of older adults working informally are self-employed workers without access to social protection," he said.

While some older adults continue working because they are living longer and want to remain active, Román said "the evidence shows that, in most cases, the primary reason is economic necessity."

He contended that the trend reflects a deeper structural problem that goes beyond national circumstances.

"Aging arrived in Latin America before the region built the economic model and social protection system capable of supporting it," he said. "Economists often summarize this reality with a phrase that has become common in regional discussions: We will grow old before we grow rich."

He said the region's long-term challenge is to ensure that longer life expectancy does not translate into more years of economic insecurity and precarious living conditions.

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This story was originally published June 5, 2026 at 1:26 PM.