Governments should urgently reform their pension systems to ensure that the growing share of workers in temporary or part-time employment can contribute enough during their working lives to receive an adequate income in retirement, according to a new OECD report.

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Pensions at a Glance 2019 says that non-standard employment, such as self-employment, temporary or part-time work, now accounts for more than one-third of employment across OECD countries. Part-time work is three times more frequent among women than among men and self-employment is particularly common among older workers. “Governments need to quickly put in place more inclusive and harmonised pensions for all,” said OECD Secretary-General Angel Gurría.

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“Reforming pension policies in OECD countries to reduce gaps between standard and non-standard workers in terms of coverage, contributions and entitlements is essential.” Non-standard workers usually earn less, often contribute less to earnings-related pensions and cannot contribute to occupational schemes.

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Even assuming a self-employed worker contributed during a full career, they would end up with around 80% of the pension benefit that dependent employees with similar income would receive from mandatory schemes, on average across the OECD. Countries should focus on creating more inclusive and harmonised pensions for all, rather than a radical shift in designing and financing pensions.

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Access to personal pension plans should not discriminate between different types of workers, for example, and people should more easily be able to transfer their pension rights and assets when they change jobs.

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