Micropensions: old age security for the poor?

11-Apr-2012    This article by Stuart Rutherford analyzes how micropensions can contribute to the assests of poor people and help protect them in old age.

How can microfinance be expanded to include approaches to the problems facing poor and very poor people in developing countries when they become too old to support themselves?

Rutherford describes how micropensions will not, at least at first, look like miniature versions of developed-country private pensions, because most would-be clients are not formally employed and do not retire. The most promising platform for developing suitable products, according to Rutherford, can be found in medium term commitment savings plans for the poor that are now growing in popularity and scale in a number of countries. This article describes the challenges that face the microfinance industry as it strives to scale up these financial instruments and to make them ever more appropriate for their users and potential users.


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