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The use of matching contributions to enhance the participation and
level of savings in pensions system has now been in use for nearly
three decades in a number of high income countries. Increasingly,
countries across the full range of economic development are looking
to the design as a means of addressing the low rates of
participation in formal pension and other retirement savings
systems. A number of countries have recently introduced innovations
in their pension systems that significantly rely on contributions
matches and related types of direct subsidies to provide incentives
for groups that mandates and other indirect methods such as
preferential tax treatment have been unsuccessful in reaching.
There is particular interest among developing countries in
utilizing this design to extend coverage to informal sector and low
income workers that typically do not pay income related taxes. This
volume provides descriptions and analysis of the design, experience
and outcomes achieved in the high income countries where there
information about the dynamics and outcomes that this approach has
achieved is not beginning to emerge. It also reviews new efforts to
use the design in a number of other settings in which the matching
contributions have been included as a significant element in reform
of the pension system. The review of the experience with matching
contribution across this full range of settings provides important
observations and some initial lessons for policy makers and
analysts who may be considering or evaluating the use of this
approach to increase pension coverage.
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