Dominican Republic's Pensions Superintendency publishes World Bank study highlighting low pension contribution density driven by labour informality

The Dominican Republic's Pensions Superintendency (SIPEN) published a World Bank co-authored study on work histories and contribution density in the Dominican pension system, pointing to highly dynamic labour informality that weakens sustained pension saving despite broad affiliation. The study finds that 30% of affiliates have contributed in less than 10% of their potential months, while only 20% have near-complete formal contribution trajectories. Although 62.7% of the working-age population is affiliated, one third of workers have never made a pension contribution and, on average, workers contribute only 4 out of every 10 possible months. Contribution density is strongly linked to income, with workers earning more than three minimum wages showing a 25 percentage point higher density than those earning less than half the minimum wage. Participation improves for younger cohorts, with 50% of those born in 1990 contributing at age 30 versus 30% of those born in 1975; the study also reports no significant gender differences in contribution density or wages once affiliated, except that in 2023 male participation was 6.7 percentage points higher. To achieve higher retirement accumulation, the study highlights the need for more consistent contributions through continuous formal participation or by using complementary pension plans to build additional long-term savings.