In this video, Indian women participating in a micro pension scheme developed by Invest India Micro Pension Service
explain why they save for old age and how much they save.
Secure future financial position
The video shows a general agreement amongst the interviewed women that the traditional family support-system, children taking care of their parents upon reaching old-age, has broken down. Because the women can't rely on the support of their children anymore, they seem to possess a strong desire to secure their future financial position through saving for their pension by participating in a micro pension scheme.
Additional motives mentioned in the interview for participating in the micro pension scheme are: (1) allowing participants to save for the dowry of their daughters, (2) long-term savings creates a secure basis of future income that can be used when falling upon hardship, and (3) privacy of financial matters, since savings via a micro pension scheme shields away the savings from social claims of family members and neighbours (savings cannot be withdrawn before the account reaches maturity).
Small income allows for saving
Interestingly, when looking at the income of the interviewed women (between 1000 - 1500 rupees (€ 14.50 - € 21.70) and 1500 - 2000 rupees (€ 21.70 - € 29) per month) one would think that saving would be impossible. However, all of the women are capable of contributing a minimum monthly amount of 5% of their income (50 to 100 rupees, or € 0.72 to € 1.45) to the micro pension scheme.
About Invest in India Micro Pension Service (IIMPS)
IIMPS was established in October 2006 by leading development and pension sector experts to enable low income informal sector workers to build up savings for retirement in a competitive and well regulated environment. IIMPS delivers pension and insurance products and services to low income workers in collaboration with micro-finance institutions, cooperatives, self-help groups, worker unions, multilateral and bilateral aid agencies, government departments and finance firms.