Invest India Micropension Scheme (IIMPS)

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The project includes an FC trust investment of EUR 2.5 million in Invest India Micropension Services Ltd. (hereinafter IIMPS). IIMPS is India's first provider of long-term pension products for the low-income population, so-called micro-pensions. These are small-scale, flexible and cost-efficient savings instruments. These are partly subsidized by the state and can be combined with micro-insurance with the aim of contributing to financial security in old age. The market for micro-pensions is still in a very early stage of development and only reaches around 1% of the target group. At the same time, micro-pensions are a highly relevant instrument in terms of development policy. Due to the growing proportion of older people in the population and the gradual weakening of traditional social and family structures, combating poverty in old age is a growing challenge. In particular, workers and self-employed people in the informal sector (target group), who make up over 90% of India's working population, are neither reached by existing pension systems nor do they have access to suitable retirement products. The IIMPS funding approach aims to offer low-income people affordable, accessible, flexible and cost-efficient pension instruments through distribution partners such as MFIs, employers or cooperatives, which are supplemented by intensive information about the importance of financial retirement provision. The project is intended to contribute to strengthening social security structures and the market for equity financing for the benefit of micro-pension companies through the targeted growth and the associated demonstration effect (DC program objectives). An accompanying measure of EUR 500,000 has been pledged. This supports IIMPS in developing and testing innovative approaches to reaching customers, activities in the area of employee development, financial education and participation in the development policy discourse.