Assessing the Demand for Micropensions Among India's Poor
Mitchell, Olivia S., and Anita Mukherjee. "Assessing the demand for micropensions among India’s poor." The Journal of the Economics of Ageing 9 (2017): 30-40.
36 Pages Posted: 1 May 2016 Last revised: 7 Aug 2020
Date Written: May 8, 2016
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
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