Our article in The Actuary (September 2025) examines the global challenge of inadequate pension coverage. We are honoured to contribute this research to Colin’s professional magazine. Contact us to receive more information or to request a meeting to discuss the findings or receive a tailored briefing relevant to your organisation.
Abstract
Across the world, millions of people still lack adequate pension provision. This paper reviews key drivers of pension gaps – from gender inequality and low replacement rates to missing contributions and the exclusion of informal workers – and considers how countries are responding.
The gender pension gap remains substantial, averaging 26% across the OECD, with women’s retirement incomes consistently lower than men’s. Informal and low-paid workers are especially disadvantaged: more than 2 billion people, or a quarter of the world’s population, work outside formal pension systems, with women over-represented. In Africa, as few as 5% of people are covered by pensions in some countries, leaving elderly populations among the most vulnerable.
Country case studies show varied approaches. Indonesia faces demographic pressure with 100 million informal workers uncovered; Japan has extended pension coverage to more part-time workers to reduce gender gaps; Mexico is introducing a new pension for women aged 60–64; and Thailand is beginning to establish a national pension framework. These reforms highlight both the scale of the challenge and the potential for targeted policy to expand coverage.
The article concludes that actuaries can play a critical role in shaping reform – advising governments, employers and providers on sustainable design, highlighting coverage gaps, and sharing international examples. Without significant action, longer lives and declining fertility will widen existing inequalities, leaving many older people without adequate protection.
How Haines Global Pensions can help you
We support organisations in tackling pension gaps and improving outcomes for vulnerable groups. We can help by:
- Analysing pension adequacy and coverage across different workforce groups.
- Advising on policy and scheme design to extend coverage to women, informal and low-paid workers.
- Benchmarking international reforms and applying lessons to local contexts.
- Working with our network of partners to integrate pension reform with broader social protection and labour market strategies.
This article forms part of our Global Pensions Research Series, alongside our papers on Global Trends in National Retirement Ages, Making Later Retirement Fair, and International Ill-Health & Disability Pensions.