The paper discusses new strategies to provide old-age security in low income countries. Demographic, social, and economic transformations are responsible for changes in the patterns of vulnerability associated with old-age, and for changes in the sources of protection. Rapid demographic change will stretch the capacity of households to provide old-age support, while economic transformation has direct implications for the livelihoods of older people. The impact of HIV/AIDS and migration underline the important role and responsibilities of older people in their households and communities.

There is growing recognition in developing countries of the urgent need to develop new strategies to extend old-age income security to all. Many middle income countries have established social security institutions covering a significant proportion of the labour force and population, but in the last two decades their coverage has stagnated or declined. In low income countries, informalisation restricts the expansion of contributory social security beyond a small fraction of the labour force. It is therefore important to consider new strategies to extend old-age income security. Noncontributory pensions and poverty reduction programmes providing regular income transfers to poor and poorest groups have proved successful in extending protection to older people and their households in low income countries.

Few developing countries have non-contributory pension schemes, but in the last decade several countries in Southern Africa (Bostwana, Lesotho, and Swaziland), Latin America (Bolivia) and South Asia (India, Bangladesh, Nepal) have introduced them. Countries with existing non-contributory pension schemes have strengthened them (Argentina, Brazil, Chile, South Africa). Non-contributory pension schemes can make a significant contribution to reducing poverty and vulnerability among older people and their households.

Due to the strong correlation existing between old-age and poverty and vulnerability, poverty reduction programmes relying on regular income transfers and targeting the poorest can provide income security in old-age. "Bolsa Familia", which replaced "Bolsa Escola" in Brazil, now reaches all poorest households regardless of composition. "Oportunidades", which replaced "Progresa" in Mexico, has introduced a direct subsidy for older people in beneficiary households as well as old-age saving plans for younger beneficiaries.

Among the challenges associated with extending social security in low income countries, three are important in the context of this paper: (i) the need to find innovative resources mobilization strategies; (ii) the need to secure a wide coverage of contingencies in noncontributory pension schemes, including survivor protection; (iii) and the need to integrate contributory and non-contributory programmes.