Understanding Income Security for Older Adults – Rethink Social Protection and Jobs in an Actively Aging World

The note first discusses the main pillars of financial security at older ages before focusing on the status of contributory and noncontributory (orsocial) pension systems in developing countries. It highlights worrying under-coverage of contributory pension systems in the face of persistent labor market informality, as well as the rise of social pensions and innovative informal sector matching schemes in response,and the trade-offs between coverage, adequacy and sustainability of pension systems. It then reviews World Bank support on the old age financial protection agenda, including different forms of budget support and investment lending, policy advisory and analytical work, capacity building and technical assistance (TA), and convening. It concludes by noting the need to broaden the policy dialogue to wider dimensions of old age financial well-being, as well as innovating with public sector and market instruments which candiversify sources of financial security at older ages.

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