Emerging markets need action to close pension savings gaps
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Well-funded pension systems benefit both individuals' retirement incomes and the broader economy. Emerging markets need to act to close their significant unfunded pension savings gap.
The key takeaways from this Economic insights are:
- Emerging economies face a cumulative pension savings gap of USD 106 trillion, or three times their GDP, as their populations age rapidly.
- Well-funded pension systems benefit the broader economy, for example by supporting capital market development.
- Pension reforms can lead to higher economic growth and lower government debt-to-GDP ratios.
- Insurance can support individuals in emerging economies to accumulate and decumulate assets over their lifecycles more smoothly.