Library Publications Micropensions: The Scope and Progress to Date

Micropensions: The Scope and Progress to Date

29 Mar 2012 8719
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This Note assesses if there is an adequate business case for micropensions in India. It also identifies the uniqueness in the existing micropension models in India. Delivering a long term savings instrument like pensions to the low income segment is a huge distributional as well as behavioural challenge. The success of any micropension scheme will ultimately depend upon:

  1. The level of trust a distributor enjoys from its clients, which is essential for a long term association;
  2. The outreach of the distributor, to bring scale;
  3. Efficiency, to handle operations in a timely manner, and
  4. The revenue model of the scheme, which will decide whether the commission is sufficient to motivate the distributor to mobilise resources.
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