ERADICATING POVERTY AMONG THE ELDERLY IN MOROCCO: A SIMULATION OF A SOCIAL PENSION POLICY

Abstract

This paper examines the issue of social and solidarity pensions in Morocco. The major problem with pension systems in Morocco is that they fail to meet the two objectives assigned to this component of social security: (1) to provide a decent standard of living for the elderly and (2) to reduce poverty among the elderly. A large proportion of Morocco's elderly (30%) do not receive any pension or transfer. Among those who do receive a pension, 50% receive a pension below the minimum wage. To solve the problem of poverty among the elderly, this paper proposes the introduction of a social pension. A social pension is a non-contributory pension that is paid to all elderly citizens, regardless of their income or employment history. The results of a micro-simulation model show that the introduction of a social pension equivalent to the poverty line would eradicate poverty among the elderly in Morocco and reduce inequalities. The cost of this policy would be 0.33% of GDP. The introduction of a social pension would be a cost-effective way to address the problem of poverty among the elderly in Morocco. It would provide a guaranteed income to all elderly citizens, regardless of their circumstances. This would help to improve the lives of millions of elderly Moroccans and reduce poverty and inequality.