Assessing the Demand for Micropensions Among India's Poor

36 Pages Posted: 1 May 2016 Last revised: 8 Jun 2016

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER)

Anita Mukherjee

University of Wisconsin - Madison - School of Business

Date Written: May 8, 2016

Abstract

Using new data from a field experiment in India, we test hypotheses about micropension design in a poor population. We elicit demand for the basic micropension in addition to variants with different minimum withdrawal ages, government match rates, and options for lump sum withdrawal. A majority (80%) of respondents report interest in the micropension, and the amount they are willing to contribute would be enough to cover about 40% of expected old-age consumption. We find that prospective policyholders value the inability to access the assets until a particular age. We also find that they respond positively to the government match rate.

Keywords: Pension; Saving; Commitment Savings; Retirement

Suggested Citation

Mitchell, Olivia S. and Mukherjee, Anita, Assessing the Demand for Micropensions Among India's Poor (May 8, 2016). Available at SSRN: https://ssrn.com/abstract=2772266 or http://dx.doi.org/10.2139/ssrn.2772266

Olivia S. Mitchell

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Anita Mukherjee (Contact Author)

University of Wisconsin - Madison - School of Business ( email )

975 University Avenue
Madison, WI 53706
United States

HOME PAGE: http://www.anitamukherjee.com

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