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Assessing the demand for micropensions among India’s poor

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  • Mitchell, Olivia S.
  • Mukherjee, Anita

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.

Suggested Citation

  • Mitchell, Olivia S. & Mukherjee, Anita, 2017. "Assessing the demand for micropensions among India’s poor," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 30-40.
  • Handle: RePEc:eee:joecag:v:9:y:2017:i:c:p:30-40
    DOI: 10.1016/j.jeoa.2016.05.004
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    Keywords

    Pension; Saving; Commitment savings; Retirement;

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