Worldwide there lies a grand opportunity of increasing accessibility to micropension products. Globally 1.8 billion people are working in the informal sector. All with limited access to pension products. And in 2050 nearly one in five people in developing countries will be over 60, needing financial security.
In 2016, Enviu and partners launched one of the world’s first micropension company in Ghana: People’s Pension Trust Ghana. With People’s Pension Trust, workers can build up a micropension by voluntarily contributing daily, weekly or monthly with flexible amounts. Simply by using their phone, bank transfers, or an existing saving group.
In Ghana approximately 80% of the population works in the informal sector. Without an employer or registration of income, they do not build up any form of pension. That means 10 million people are not prepared for their retirement. In the next 40 years the share of Ghanaians over 60 years old will double from 7% to 15%. Even more people will fall in the gap.
People’s Pension Holding: Replicating the model of People’s Pension Trust globally
Enviu has already run feasibility studies and pilots in India to replicate the model of People’s Pension Trust globally. Other African countries are next on the list.
This is possible because Enviu set up People’s Pension Holding. Activities such as human resources, marketing, and sales are divided between the holding company and the venture. A holding company functions as an umbrella under which new ventures are developed without distracting the entrepreneurial team, but building on their experiences