Informal work complicates pension coverage as populations age

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  A report by the OECD says widespread informal employment makes it harder for developing countries to build pension systems that provide broad coverage and adequate retirement benefits.

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  Across 58 countries studied, 51% of older people receive pension benefits, but coverage varies widely.

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  Only 40% of employed people and 8% of informal workers contribute to a pension scheme.

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  The OECD says barriers include low or irregular earnings, limited information, distrust and a lack of suitable options.

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  It recommends combining non-contributory support with contributory schemes that can serve informal workers while balancing retirement security and incentives to formalise employment.

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  The share of the world’s population aged over 65 is projected to rise from 10% in 2022 to 16% in 2050 and 24% in 2100.

Who

The OECD and developing countries facing ageing populations and widespread informal employment.

What

Informal work makes it harder to expand pension coverage and provide adequate retirement benefits.

When

The report was released during the week of October 11, 2026.

Where

The report examines 58 countries; the article discusses developing and emerging economies globally.

Why

Low and irregular incomes, lack of information, distrust and limited suitable options hinder pension contributions.

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