Where Angels Prey

Where Angels Prey is a novel by Ramesh S Arunachalam. Please refer to www.whereangelsprey.com for more information

Saturday, February 26, 2011

Why the Poor Need Pensions and What Strategies Do They Use for Old Age Security?

Ramesh S Arunachalam
Rural Finance Practitioner

As Table 1 suggests, there are several challenges that old people face and they have very few means for overcoming these challenges.

The case for micro-pensions can never be argued more strongly as these people suffer dual oppressions – being old and on top of that, being poor as well.

In terms of preparing for old age, the poor use several strategies including:

·         Investment in Assets (Cash or kind (Land/House), etc.)
·         Investment in Children – that is often why poor have many children, thus resulting in larger family sizes, which ironically prevents savings at a younger age
·         Save Cash (Different options)
·         Informal Groups and
·         Other temporary strategies including high cost borrowing

Therefore, there is an urgent need to enable the elderly to prepare for old age and the time for micro-pensions has never been stronger…


Have a Nice Day


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