How to Promote Retirement Savings for Low-Income and Independent Workers: The Cases of Chile, Colombia, Mexico and Peru
Peer Reviewed
Date issued
Nov 2019
Subject
Pension Systems;
Income, Consumption and Saving;
Retirement Saving
JEL code
G23 - Non-bank Financial Institutions • Financial Instruments • Institutional Investors;
D83 - Search • Learning • Information and Knowledge • Communication • Belief • Unawareness;
D91 - Intertemporal Household Choice • Life Cycle Models and Saving;
H55 - Social Security and Public Pensions;
J26 - Retirement • Retirement Policies;
E21 - Consumption • Saving • Wealth
Country
Colombia;
Mexico;
Peru;
Chile
Category
Technical Notes
The objective of this document is to understand the potential that voluntary savings has to increase pension coverage for low-income and independent workers in Chile, Colombia, Mexico, and Peru. It comprehensively reviews supply, demand, and institutional barriers to retirement savings, and presents possible cost-effective solutions to overcome these barriers. The framework of solutions proposed consists of behavioral tools, in addition to financial and technological innovations, with high potential for impact on the long-term savings of independent and low-income workers.
