In Bangladesh about six percent of the populations are older people i.e. 9 million. By 2025 one in ten persons will be older people i.e. 18 million. The majority of older people in Bangladesh lack the resources to fulfill their most basic needs in terms of food, clothes, housing and health and do not have access to income generating opportunities. Traditionally, older people rely on support from their extended family. However, mobility, migration, economic hardship and other factors are eroding the traditional family support system for older people.

Social pension
The vast majority of old age people live in absolute poverty. To partly alleviate the situation, as of 1998, the Bangladeshi government introduced the Old Age Allowance Programme as a social pension for older people. The old-age allowance is means-tested and recipients are selected by the community. Eligibility starts at age 57, and half of the recipients have to be women. Additional criteria for selection is a lack of land or annual income below 3000 taka (US$42), chronic poor health and inability to work (

Second pillar
The government provides a pension to government servants on their retirement from public service. Bangladesh has not made any policy for retirement and pension of the agricultural workers. The sector consists of forestry, crops and horticulture, animal farming and fishing sub-sectors. The industry sector consists of all industries of the country including companies and other organizations. The workers of these industries are not allowed pension at the time of retirement except that only an amount of gratuity is provided to them. They are not allowed to receive other benefits at retirement.

Micro pension
Some MFIs provide saving schemes for old age to their clients. For example, the Bangladesh MFI Grameen Bank launched a commitment savings account, called the 'Grameen Pension Savings' (GPS). For more information please read the article below.

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Bangladesh: Grameen Pension Savings (GPS)

The GPS is a pension saving scheme for Grameen Bank members & staff.
World Bank Institute

Microcredit lessons from Bangladesh

A World Bank Policy Research Working Paper by Hassan Zaman describes the factors that led to the scaling-up of microcredit in Bangladesh, the impact this has had on the poor, future challenges in Bangladesh and possible lessons for other countries.
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