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

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

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

Anita Mukherjee

Wisconsin 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). 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., 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

University of Pennsylvania - The Wharton School, Pension Research Council ( email )

3302 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6302
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Anita Mukherjee (Contact Author)

Wisconsin School of Business ( email )

975 University Avenue
Madison, WI 53706
United States

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

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